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Question 1 : You are saving for retirement. To live comfortably, you decide you will need to save $ 2 million by the time you
Question : You are saving for retirement. To live comfortably, you decide you will need to save $ million by the time you are Today is your th birthday, and you decide, starting today and continuing on every birthday up to and including your th birthday, that you will put the same amount into a savings account. If the interest rate is how much must you set aside each year to make sure that you will have $ million in the account on your th birthday? Answer: $
Question :You realize that the plan in Problem has a flaw. Because your income will increase over your lifetime, it would be more realistic to save less now and more later. Instead of putting the same amount aside each year, you decide to let the amount that you set aside grow by per year. Under this plan, how much will you put into the account today? Recall that you are planning to make the first contribution to the account today Based on Question numbers, can I please have answer to question Thanks
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