Question
Suppose that your goal is to have $1,000,000 in your retirement account when you retire at age 70, and you have a set amount automatically
Suppose that your goal is to have $1,000,000 in your retirement account when you retire at age 70, and you have a set amount automatically deducted weekly from your paycheck and deposited in the retirement account, which earns 6.5% annual interest, compounded weekly.
1a.) How much should each deposit be if you start saving for retirement at age 40?
1b.) How much will be the total interest earned by the time you are 70 if you start saving at age 40?
1c.) If you dont have a fixed idea of when you will retire, but decide to save $100 per paycheck (again weekly) and invest it at 6.5% annual interest compounded weekly, in how many years will the value of the investment reach $1 million? Round your answer to the nearest year.
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