Question

You want to have $2.7 million when you retire in 37 years. You feel that you can save $600 per month until you retire. What APR do you have to earn in order to achieve your goal

Answer 1

Answer:

9.87%

Explanation:

Calculation to determine What APR do you have to earn in order to achieve your goal

$2.7 million = $600{[(1 + r)444 − 1] / r}

r = .0082*100

r=.82%

r = .82% × 12

r = 9.87%

Therefore the APR you have to earn in order to achieve your goal is 9.87%