Question
1) You believe you will have one million dollars when you retire in 40 years. But what is that actually worth in today's dollars if
1) You believe you will have one million dollars when you retire in 40 years. But what is that actually worth in today's dollars if the average interest rate is 6% over that time period?
2) You are currently 22 years old and just started your job. You plan on saving $1,200 per year until you retire at age 65. The rate of return you believe your investments will earn is 7%. How much money will you have when you retire?
3) You want to have 2 million dollars when you retire early at age 55 (33 years from now). How much will you have to save each year if you can earn 8%?
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