Answered

Find the best answers to your questions at Westonci.ca, where experts and enthusiasts provide accurate, reliable information. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

You have decided that you want to be a millionaire when you retire in 45 years. a. If you can earn an annual return of 11.4 percent, how much do you have to invest today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you can earn 5.7 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Sagot :

The amount I should invest today if I earn an annual return of 11.4% is  $7,765.45.

The amount I should invest today if I earn an annual return of 5.7% is  $82,532.61.

What is the amount I should invest today?

The formula that can be used to determine the amount I should invest today is:

PV = FV / (1 +r)^t

Where:

  • PV = present value
  • FV = future value = $1,000,000
  • t = 45 years
  • r = interest rate = 11.4%, 5.7%

$1,000,000 / (1.114)^45 = $7,765.45

$1,000,000 / (1.057)^45 = $82,532.61

To learn more about present value, please check: https://brainly.com/question/25748668

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.