Answered: You want $1,000,000 in the bank when…

You want $1,000,000 in the bank when you retire in 35 years. How much should you deposit each year? Assume an interest rate of 10%. What is the annual payment if you defer retire to 40 years?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section9.1: Present Value: Measuring The Time Value Of Money

Problem 1QQ

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c. You want $1,000,000 in the bank when you retire in 35 years. How much should you
deposit each year? Assume an interest rate of 10%. What is the annual payment if you
defer retire to 40 years?

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