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Max has decided to retire once he has $1,000,000 in his retirement account. At the end of each year, he will contribute $4,500 to the
Max has decided to retire once he has $1,000,000 in his retirement account. At the end of each year, he will contribute $4,500 to the account, which is expected to provide an annual return of 7.4%. How many years will it take until he can retire? O 35 years O 38 years 0 32 years O 39 years O 40 years Suppose Max's friend, Jim, has the same retirement plan, saving $4,500 at the end of each year and retiring once he hits $1,000,000. However, Jim's account is expected to provide an annual return of 10.0%. How much sooner can Jim retire? 4 years 7 years O 6 years O 2 years O 5 years After 25 years, neither Max nor Jim will have enough money to retire, but how much more will Jim's account be worth at this time? O $169,363 O $141,056 O $107,938 O $109,283 O $162,869 Max is jealous of Jim because Jim is scheduled to retire before him, so Max decides to make whatever end-of-year contribution is necessary to reach the $1,000,000 goal at the same time as Jim. If Max continues to earn 7.4% annual interest, what annual contributions must he make in order to retire at the same time as Jim? O $9,873 0 $8,226 O $7,751 O $11,320 O $13,361
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