Dan would like to save $1,500,000 by the time he retires in 25 years and believes he can earn an annual return of 8%. How much does he need to invest in each of the following years to achieve his goal?
A)$20,518
B)$40,850
C)$18,900
D)$58,000
E)$25,304

Question

Quizplus · Accepted Answer

Using the future value of an annuity formula, Dan needs to invest $20,518 annually to reach $1,500,000 in 25 years at an 8% annual return.

Dan Would Like to Save $1,500,000 by the Time He