Question 1 If you are 25 years of age and started saving today for a $1,000,000 at retirement at age 65, and you felt you could earn a 6% rate of return on your investment, how much would you need to save per year? Future Value of an Annuity $ invested/yr X Future Value Annuity Factor for 40 yrs and 6% - $1,000,000 $ invested/yr = $1,000,000 / 154.76 = $6,461.62/ year You calculate how much you'd have to save per year if you could invest at 8% per year, and comment on the difference. What if you waited until at 50 to start saving for your $1,000,000? $ invested/yr X FVAF for 15yrs and 6% = $1,000,000 $ invested/yr = $1,000,000 / 23.276 = $42,962.71 You calculate how much you'd have to save per year if you could invest at 8% per year, and comment on the consequences of waiting until age 50 to start saving