Question

Assume you are now 25 and you want to have a million dollars by the time you are 65. if you can earn 6% per year, compounded annually, how much must you invest today?

Answer 1

You would have to invest 97,222
97222*6=5833.32 + 97222= 103055.32 Year one
103055.32*.06= 6183.32 = 109238.64 Year two
109238.64*.06= 6554.32= 115792.96 Year three
115792.96*.06= 6947.58 = 122740.54 Year four