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14 February, 01:56

Assume you are now 25 and you want to have a million dollars by the time you are 65. if you can earn 6% per year, compounded annually, how much must you invest today?

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  1. 14 February, 01:57
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    You would have to invest 97,222

    97222*6=5833.32 + 97222 = 103055.32 Year one

    103055.32*.06 = 6183.32 = 109238.64 Year two

    109238.64*.06 = 6554.32 = 115792.96 Year three

    115792.96*.06 = 6947.58 = 122740.54 Year four
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