If your investments earn a rate of return of 86 percent


You are celebrating your 22nd birthday today. You have decided to start investing toward your retirement beginning one month from today. For the first twenty years, you will invest $400 every month. During the next ten years, you will increase your contributions to $900 per month. For the remainder of your working life until you retire at age 65, you plan to invest $1,400 every month. If your investments earn a rate of return of 8.6 percent throughout your working life, how much will be in your retirement account on the day you retire?

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Financial Management: If your investments earn a rate of return of 86 percent
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