A recent college graduate has decided on a goal of having $1,000,000 at retirement, and believes that she can earn a return of 12% by depositing into mutual funds for her IRA.
She is 25 years old and would like to retire at age 60.
a. What annual amount must she deposit?
b. What annual amount would be required if she waits until she is 35 to start the deposits?
c. From pan a, what is the accumulated amount if at age 60 she decides to continue the deposits and work three more years?