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.?

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