John would like to save $1,500,000 by the time he retires in 30 years and believes he can earn an annual return of 8%.How much does he need to invest each year to achieve his goal?
A) $13,242
B) $18,900
C) $20,518
D) none of the above

Question

Quizplus · Accepted Answer

To find the annual investment, use the future value of an annuity formula: FV = Pmt * [(1 + r)^n - 1] / r. Solving for Pmt gives $13,242.

John Would Like to Save $1,500,000 by the Time He