Question
Jessica is 30 years old and wants to retire when she is 65. So far she has saved (1) $6,950 in an IRA account in
Jessica is 30 years old and wants to retire when she is 65. So far she has saved (1) $6,950 in an IRA account in which her money is earning 8.3% annually and (2) $5,000 in a money market account in which she is earning 5.25 percent annually. Jessica wants to have $1,000,000 when she retires. Starting next year, she plans to invest the same amount of money every year until she retires in an investment fund in which she expects to earn 9 percent annually. How much will Jessica have to invest every year to achieve her savings goal? (Round up the answer to the nearest dollar.)
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