If you want to own $1 million when you retire in 45 years,how much should you put into your retirement fund now,given the interest rate is 3 percent?
A)$265,439.
B)$250,005.
C)$436,770.
D)$275,389.

Question

Quizplus · Accepted Answer

To find the present value needed to reach $1 million in 45 years at a 3% interest rate, we use the formula for present value: PV = FV / (1 + r)^n. Plugging in the values: PV = $1,000,000 / (1 + 0.03)^45, which calculates to approximately $265,439.

If You Want to Own $1 Million When You Retire