You are trying to save for retirement and want to have $500,000 (fv) when you turn 65 years old (currently you are 25 so 40 yr period). If you put in $10,000 and earn an interest rate of 22% annually what would be the needed amount of your yearly contribution to your retirement to reach your goal?

You are trying to save for retirement and want to have $500,000 (fv) when you turn 65 years old (currently you are 25 so 40 yr period). If you put in $10,000 and earn an interest rate of 22% annually what would be the needed amount of your yearly contribution to your retirement to reach your goal?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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You are trying to save for retirement and want to
have $500,000 (fv) when you turn 65 years old
(currently you are 25 so 40 yr period). If you put
in $10,000 and earn an interest rate of 22%
annually what would be the needed amount of
your yearly contribution to your retirement to
reach your goal?

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