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Annual rate of return

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On your 30th birthday you decide to kick it up a notch or two as it relates to saving for your retirement. You just read the article entitled "Is it possible to put away $1 million by the time you're 40?" by Matt Krantz. You want to make it a goal to have $1 million saved for retirement at the age of 60.So today on your 30th birthday you invest $3,000.You plan to increase your annual investment amount by 2% each year, and the last investment will be made on your 59th birthday. You currently have $22,500 in your retirement account. What annual rate of return will you need to make on your investment in order to have $1,000,000 in the account on your 60th birthday?Will investing in CDs get you to your goal?

Reference no: EM131206053

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