Calculate the amount for investment

Reference no: EM1359313

A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount each year into an investment account that earns 8% interest per year, starting on the day your child is born. How much would you need to invest each year (rounded to the nearest dollar) to accumulate a million for your child by the time he is 50 years old? (Your last deposit will be made on his 49th birthday.)

a. $8,000
b. $1,614
c. $18,400
d. $2,347

Reference no: EM1359313

Questions Cloud

Capital assets and taxes : Joel has four transactions involving the sale of capital assets during the year resulting in a STCG of $5,000, a STCL of $12,000, a LTCG of $1,800 and a LTCL of $1,000. As a result of these transactions, Joel will:

What is the maximum reaction time : A train is traveling up a 3.3 incline at a speed of 3 when the last car breaks free and begins to coast without friction. How long does it take for the last car to come to rest momentarily? How far did the last car travel before momentarily coming..

Etiology of inhalant abuse : Can you describe a commonly abused inhalant, the etiology of inhalant abuse, and a current treatment approach that has shown effectiveness.

How many registers available for use by input parameters : Each register window has 32 registers, of which 10 are global variables and 10 are local variables. How many registers would be available for use by input parameters?

Calculate the amount for investment : A financial advisor tells you that you can make your child a millionaire if you just start saving early. You decide to put an equal amount every year into an investment account that earns 8 percent interest per year, beginning on the day your child i..

Calculate the y-component of the magnetic force : Calculate the y-component of the magnetic force. How fast must the candy bar travel to have the same joules in the form of kinetic energy.

Write advantages and disadvantages does this incentive offer : Explain A publisher offers college professors one of a selection of four best selling mass market books as an incentive for filling out a ten page mail questionnaire about a new textbook and What advantages and disadvantages does this incentive of..

Diagnosis and treatment of a cannabis using client : Discuss what strategies would you use for intervention, diagnosis and treatment of a Cannabis using client?

Gains and losses on sale of assets : Which of the following statements is true? I. The entire amount of realized gains and losses from the sale of assets are recognized for tax purposes.

User Account

All Pages