Question

Today is your birthday! you turn 23. Your birthday wish is that you will be a millionaire by your 40th birthday. To make this wish come true you decided to walk to your local wells & wells bank first thing every morning and deposit $75 a day. You will be doing this every day (your bank is even open on weekends!), until you turn 40. You deposit your first $75 today. What annual interest rate must you earn in order for your wish to come true?.

Answer 1

You must earn an annual interest rate of 8.09%.

Compound interest

Given that you will deposit $75 a day each day for 17 years, and you deposit your first $75 today, to determine what annual interest rate you must earn in order for you to become a millionaire, you must perform the following calculation:

• 40 - 23 = 17
• 17 x 365 = 6205
• 6205 x 75 = 465,375
• 1 to 100 median = 57.9
• 465,375 x 1.0809^(17 x 0.579) = X
• 1,000,815 = X

Therefore, you must earn an annual interest rate of 8.09%.

Learn more about compound interest in brainly.com/question/25857212