When you retire 40 years from now you want to have 12, Financial Management

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When you retire 40 years from now you want to have 12

When you retire 40 years from now, you want to have $1.2 million. You think you can earn an average of 12 percent on your investments.

To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today.

How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit?

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Financial Management: When you retire 40 years from now you want to have 12

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