Because the judge has the final answer because Theo waved his right for a trial
Answer
Miguel must set aside $62,745 annually
Explanation
N = Number of years till Miguel would retire = 43 years
FV = Future Value = $1,000,000
r = Interest rate = 10%
PMT = Annual payments (at the ending of the year) = ?? The question asks us to calculate this
We would use the future value ordinary annuity formula to calculate PMT
FV = PMT ![[\frac{(1+r )^{N} -1}{r} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B%281%2Br%20%29%5E%7BN%7D%20-1%7D%7Br%7D%20%5D)
1000000 = PMT ![[\frac{(1+0.10 )^{10} -1}{0.10} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B%281%2B0.10%20%29%5E%7B10%7D%20-1%7D%7B0.10%7D%20%5D)
PMT ≅ $62,745
Miguel must set aside $62,745 annually
Buying on margin is basically borrowing money from your broker that you don't necessarily have at the time to buy additional shares. You must have a margin account, which is separate from your cash account. Usually you are able to borrow up to 50% of the new stock price.