George has decided to retire once he has $1,000,000 in his retirement account. A

Question

George has decided to retire once he has $1,000,000 in his retirement account. At the end of each year, he will Contribute $6,000 to the account, which is expected to provide an annual return of 7.5%. How many years will it take until he can retire? (Round to the nearest year.) 42 years 31 years 36 years 43 years 38 years Suppose Georges friend, Mike, has the same retirement plan, saving $6,000 at the end of each year and retiring once he hits $1,000,000. However, Mike's account is expected to provide an annual return of 9.1%. How much sooner can Mike retire? (Round to the nearest year.) 2 years 7 years 4 years 5 years 6 years After 25 years, neither George nor mike will have enough money to retire, but how much more will Mikes account be worth at this time? $289,671 $130,073 $215,877 $107,938 $186,514 George is jealous of Mike because Mike is scheduled to retire before him, so George decides to make whatever end-of-year contribution is necessary to reach the $1,000,000 goal at the same time as Mike. If George continues to earn 7.5% annual interest, what annual contributions must he make in order to retire at the same time as Mike? $8,226 $7,751 $13,361 $8,789 $11,695

Explanation / Answer

1. The answer would be 36 years

2. The answer would be 4 year as (36 year minus 32 year)

3. The answer would be $107938 because after 25 year the corpus would be as follows

Mike- $515805

George: $ 407867

Diff = 107938

4. The answer would be a i.e. 8226

FV 1000000 Pmt 6000 r 7.50% n ? nper 35.98818966

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