Gina Dare,who wants to be a millionaire,plans to retire at the end of 40 years.Gina's plan is to invest her money by depositing into her Superannuation account.What is the amount that she needs to deposit annually in order to accumulate $1,000,000? Assume that the account will earn an annual rate of 11.5%.Round off to the nearest $1.

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Quizplus · Accepted Answer

The correct answer is A.The formula for calculating the annual deposit required to accumulate a future value is:PMT = FV * (r / ((1 + r)^n - 1))where:PMT = annual depositFV = future valuer = annual interest raten = number of yearsIn this case, we have:FV = $1,000,000r = 11.5% = 0.115n = 40Plugging these values into the formula, we get:PMT = $1,000,000 * (0.115 / ((1 + 0.115)^40 - 1))PMT = $1,000,000 * (0.115 / 105.317)PMT = $1,000,000 * 0.00114PMT = $1,497Therefore, Gina needs to deposit $1,497 annually in order to accumulate $1,000,000 in her Superannuation account.

Gina Dare,who Wants to Be a Millionaire,plans to Retire at the End