Assume that you plan to retire 40 years from now and that, Ask an Expert

Economics

Assume that you plan to retire 40 years from now and that you expect to need $2M to support the lifestyle that you want.

(a) If the interest rate is 10%, is the following statement approximately true? "Waiting 5 years to start saving double is what you must deposit each year."

(b) If the interest rate is 12%,is the required multiplier higher or lower than for the 5% rate in

(a)?

(c) At what interest rate is the following statement exactly true? "Waiting 5 years to start saving doubles what you must deposit each year.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92635868

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