In order to accumulate $500,000 after 25 years, calculate the amounts that must be invested at the end of each year if the invested funds earn:
a. 6% compounded annually.
b. 7% compounded annually.
c. 8% compounded annually.
d. 9% compounded annually.
Also calculate the total earnings in each case. (Note that the total earnings increase proportionately more than the rate of return from one case to the next.)

Question

Quizplus · Accepted Answer

The Answer is a) $9113.86 & $272,166.00
b) $7905.26 & $302,368.50
c) $6839.39 & $329,015.25
d) $5903.13 & $352,421.75 $289,546.40
$9328.37 & $346,269.60

In Order to Accumulate $500,000 After 25 Years, Calculate the Amounts