Question: Two engineering graduates who recently got married are planning for their early retirement 20 years from now. They believe that they will need $2,000,000 in

Two engineering graduates who recently got married are planning for their early retirement 20 years from now. They believe that they will need $2,000,000 in year 20. Their plan is to live on one of their salaries and invest the other. They already have $25,000 in their investment account.

(a) How much will they have to invest each year if the account grows at a rate of 10% per year?

(b) If the maximum they have available to invest each year is $40,000, will they reach their goal of $2 million by year 20?

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