Your finance professor suggests that you should have $2,500,000 in your retirement portfolio before you even THINK about retiring. Recently, your uncle sold valuable California real estate and handed you a check for $300,000
This is the amount you have after paying taxes. He is now your favorite uncle.) How much of the $300,000 must you set aside today if you invest a portion of the money at an annual rate of 8.0% and you wish to retire in 35 years with the amount suggested by your finance professor?
A) $169,086
B) $14,508
C) $130,914
D) At an annual rate of return of 8.0%, $300,000 is not a large enough investment to reach the goal amount of $2,500,000 in 35 years.
Answer: A
Explanation: A) PV = = = $169,086.36
MODE = END
INPUT 35 8 ? 0 -2,500,000
KEY N I/Y PV PMT FV
CPT 169,086.36
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