Determining the equal annual amounts


Assuming an interest rate of 9%, how much money must Claude invest each year (30 equal annual amounts beginning one year from now) to provide for his retirement and his son"s education? [$9565.36] 5. According to a recent Wall Street Journal article "77 percent of today"s college students expect to become millionaires in their lifetime." Assume we (loosely) define "millionaire" as simply possessing $1 million, the opportunity rate is the average annually compounded return on large-firm common stocks over the last 70 years (about 10 percent), and that the average college student expects to work (and set aside funds monthly) for 50 years. How much must be invested monthly to accumulate $1 million?

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Business Management: Determining the equal annual amounts
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