ould like to accumulate $1,300,000 in investments for her financial independence in 24 years from now (in real terms). She currently has $60,000 in investments. She expects the real rate of return on her investments over the next 24 years to be 5% per annum (compounded yearly). Assuming that additional investments are made at the end of each year, how much does she need to save and invest (in real terms) each year over the next 24 years to achieve financial independence (to the nearest dollar)? Please do not include dollar signs or commas in your answer. Answer:Question

ould like to accumulate $1,300,000 in investments for her financial independence in 24 years from now (in real terms). She currently has $60,000 in investments. She expects the real rate of return on her investments over the next 24 years to be 5% per annum (compounded yearly). Assuming that additional investments are made at the end of each year, how much does she need to save and invest (in real terms) each year over the next 24 years to achieve financial independence (to the nearest dollar)? Please do not include dollar signs or commas in your answer. Answer:Question

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 10P

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