Daniel\'s friend, Ian, has hired a financial planner for advice on retirement. C

Question

Daniel's friend, Ian, has hired a financial planner for advice on retirement. Considering lan's current expenses and expected future Iifestyle changes, the financial planner has stated that once Ian crosses a threshold of $6,501,363 in savings, he will have enough money for retirement. Ian has nothing saved for his retirement yet, so he plans to start depositing $40,000 in a retirement fund at a fixed rate of 9.00% at the end of each year. It will take years for lan to reach his retirement goal. 31.90 years 43.07 years 39.88 years 27.12 years Type here to search

Explanation / Answer

Future value required $         6,501,363 Deposit annually $               40,000 Interest rate 9% Using financial calculator we have I= 9% PV= 0 PMT             40,000.00 FV            (6,501,363) Compute for N =                     31.90 Hence, correct answer is 31.9 year

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