June wants to have $2 million to retire. She has $100,000 saved toward retirement today and does not plan to add to or withdraw from these savings until she hits her target. If she wants to retire in 30 years, what is the minimum effective annual interest rate she will need for her investment? (Enter your answer as X% rounded to 2 decimal places)
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1. June wants to have $2 million to retire. She has $100,000 saved toward retirement today and does not plan to add to or withdraw from these savings until she hits her target. If she is receiving 10% compounded monthly on her savings, how many years until she can retire? If she wants to retire in 30 years, what is the minimum effective annual rate she will need for her investment?
Akash M.
Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2500 dollars into an account that pays an effective rate of interest of 9.9 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.45 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal? Answer =
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Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 1980, of 2400 dollars into an account that pays an effective rate of interest of 7.1 percent. She has continued this practice every year through January 1, 2001. Her goal is to have 1.35 million dollars saved up at the time of her retirement. How large should her annual deposits be (from January 1, 2002 until January 1, 2020) so that she can reach her goal?
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