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Steve would like to have $2 million at the time of his retirement in 30 years. Assume he finds a mutual fund that will earn
Steve would like to have $2 million at the time of his retirement in 30 years. Assume he finds a mutual fund that will earn 4 percent annually. 1. If he plans to make a single investment today on this mutual fund. How much does Steve have to invest today to reach his retirement goal of $2 million at the time of his retirement? 2. If he plans to make a fixed amount of annual investment at the end of each year over the next 30 years, how much will Steve have to invest annually to reach the same retirement goal?
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