Search for question
Question

You begin to contribute to an investment plan with your company immediately after graduation, when you are 23 years old. Your contribution plus your company's contribution totals $6000/y. Assume that

you work for the same company for 40 years. a. What effective annual interest rate is required for you to have $1 million in 40 years? repeat Part (a) for $2 million. c. What is the future value of this investment after 40 years if the effective annual interest rate is 7% p.a.?

Fig: 1

Fig: 2

Fig: 3

Fig: 4