When you retire 45 years from now, you want to have $1.25 million saved. You think you can earn an average of 7.6 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today to fund this goal. How much more will you have to deposit if you wait for five years before making the deposit?
A) $17,414.14
B) $21,319.47
C) $19,891.11
D) $20,468.85
E) $13,406.78

Question

Quizplus · Accepted Answer

The Answer of When you retire 45 years from now, you want to have $1.25 million saved. You think you can earn an average of 7.6 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today to fund this goal. How much more will you have to deposit if you wait for five years before making the deposit?
A) $17,414.14
B) $21,319.47
C) $19,891.11
D) $20,468.85
E) $13,406.78

When You Retire 45 Years from Now, You Want to Have