finance

posted by .

You want to accumulate $1,000,000 in retirement funds by your 65th birthday. Today is your 30th birthday, and you plan on making annual investments into a mutual fund that you project will earn a 10% annual rate of return. Your first deposit will take place today and your last deposit will take place on your 65th birthday. What is the amount of the annual payment you must make each year in order to have $1,000,000 in your account on the day you make your last deposit - that is, on your 65th birthday?

  • finance -

    2927.49

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    8. Assume you just turned 28. You want to accumulate $3.5 million by your 65th birthday. Beginning next year, you will invest equal amounts each year until your 60th birthday. Your twin brother has the same goal, but he will wait 4 …
  2. finance

    You are 25 years old and inherit $65,000 from your grandmother. If you wish to purchase a $100,000 yatch to celebrate your 30th birthday, what compound annual rate of return must you earn?
  3. Algebra investment

    An investor had a total of 25,000 put into a portfolio of stocks, bonds, and mutual funds. In one year, he earned 8% on the stock investment, 10% on the bond investment and 6% on the mutual funds investment. The annual(simple interest) …
  4. value of money

    You want to have $1,000,000 in your bank account when you turn 65 years old. Today is your 20th birthday. As a birthday present you received $27,000 and you want to invest this amount. At what annual interest rate must you achieve …
  5. Finance

    Steve and Ed are cousins who were both born on the same day, and both both turned 25 today. Their grandfather began putting $2,500 per year into a trust fund for Steve on his 20th birthday, and he just made a 6th payment into the fund. …
  6. finance

    You currently have $22,500 in your retirement account. What annual rate of return will you need to make on your investment in order to have $1,000,000 in the account on your 60th birthday?
  7. Finance

    On August 1, 2005 you invested $3,000 into a mutual fund. You then invested $1,000 into that same mutual fund on the first day of August for each of the years 2006 through 2013. You averaged a 7.25% annual rate of return on your investment …
  8. finance

    company starting salary 75,000 retirement benefits 401k with annual contribution of 5% company will match 3% (for max contribution of 8% salary) avg 401k return within mutual fund options at 8% per year sign on bonus 0 annual bonus …
  9. math

    Saving for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 4% annual interest compounded monthly. How much will be in your fund at age 65 if you …
  10. Finance

    Dominique has just turned 65 and she has deposited her annual payment of $20,000 into her retirement account. She made her first such saving deposit into this fund on her 35th birthday. Dominique has also retired and wants to figure …

More Similar Questions