Question
Henry wants to have $1,000,000 in investment assets in his taxable account when he retires in 10 years. He currently has $100,000 in investment assets
Henry wants to have $1,000,000 in investment assets in his taxable account when he retires in 10 years. He currently has $100,000 in investment assets in this account. He anticipates that these investment assets will increase at 10% yearly before taxes, or 8% after taxes. How much must he invest monthly to achieve his goal?
A: $4,253
other options are: $3,560, $4,882, and $5,466, which are all incorrect.
If someone can explain how they are lead to this answer, it would be much appreciated. I am positive it is the correct answer. I cannot get it to work on my financial calculator.
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