You plan to invest $12,000 per year into a retirement account. If you earn a compound annual rate of return of 11%, how many years will it take you to reach a balance of $1,500,000?   Question 2 options:   22.83   25.79   24.24   21.09   26.76

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You plan to invest $12,000 per year into a retirement account. If you earn a compound annual rate of return of 11%, how many years will it take you to reach a balance of $1,500,000?
 

Question 2 options:

 
22.83
 
25.79
 
24.24
 
21.09
 
26.76
Expert Solution
Step 1

Annual payment = p = $12,000

Rate of return = r = 11%

Future value = fv = $1,500,000

 

Time = t = ?

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