Janet elliot just turned 20 and received a gift of 20000, Ask an Expert

Economics

Janet Elliot just turned 20 and received a gift of $20,000 from her rich uncle. Janet plans ahead and would like to retire on her 55th birthday. She thinks she'll need about 1$million saved by that time in order maintain her modest lifestyle. She wants to make a payment at the end of each year(starting at the end of this year) until she's 50 into an account she'll open with her uncle's gift. After that she wants to stop making payments and let the money grow with interest until it reaches 1$ million when she turns 55. assume she can invest 7% compounded annually. How much will she have to invest each year to achieve here objective?

A)10,593

B)7,130

c)15,224

D)5,938

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91722189

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