After watching "Who Wants to Be a Millionaire," you have decided you want to join the millionaire's club. Your goal is to have $1,000,000 in 35 years. If you can invest in a mutual fund that you project will earn a 10% return, how much must you invest each year to meet your goal? (Round to nearest $)
A)$2,852
B)$3,690
C)$4,357
D)$5,119

Question

Quizplus · Accepted Answer

To calculate the annual investment needed, we can use the formula: FV = PV x (1 + r)^n, where FV is the future value (amount of $1,000,000 in 35 years), PV is the present value (amount we need to invest each year), r is the annual interest rate (10%), and n is the number of years (35). Plugging in the values, we get: $1,000,000 = PV x (1 + 0.10)^35. Solving for PV, we get: PV = $3,690. Rounded to the nearest dollar, the answer is choice B.

After Watching "Who Wants to Be a Millionaire," You Have