If you want to own $1 million when you retire in 45 years,how much should you put into your retirement fund now,given the interest rate is 3 percent?
A) $250,005.
B) $436,770.
C) $264,439.
D) $275,389.

Question

Quizplus · Accepted Answer

To find the present value needed to reach $1 million in 45 years at a 3% interest rate, use the formula for present value: PV = FV / (1 + r)^n. Plugging in the values: PV = 1,000,000 / (1 + 0.03)^45, which calculates to approximately $264,439.

If You Want to Own $1 Million When You Retire