Problema Solution

If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $1 million?

Answer provided by our tutors

let x = the money you have to save each year


x(1 + 0.04)^35 = 1000000


by solving we find


x = $253,415.471


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you have to save 253,415.471 each year to retire with $1 million.