You would like to have a $1,000,000 in 25 years at retirement. Your investments will earn 1% permonth on average. How much do you have to put away at the end of each month to meet yourobjective?

Question

Quizplus · Accepted Answer

To find the monthly investment needed, we use the future value of an annuity formula: FV = Pmt * [(1 + r)^n - 1] / r. Here, FV = $1,000,000, r = 0.01 (1% per month), and n = 300 (25 years * 12 months). Solving for Pmt gives approximately $533.

You Would Like to Have a $1,000,000 in 25 Years