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March 30, 2017

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Justice wants to invest in a mutual fund for her retireme. If she expects to make 17% annually and wants to retire in 35 years, how much money must she invest per month to have 5 million dollars when she retires?

  • math - ,

    Amount = A
    Use the compound interest formula
    A(1.17)^35=5000000
    log(A)=log(5000000)-35log(1.17)
    A=20533.59 (per year)
    or
    1711.13 per month.

    Note: there hasn't been an interest rate as high as 17% for the past thirty years of so in North America.

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