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Money in monthly installments

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Savings Plan:

a. Suppose you start a retirement savings plan when you're 28 and want to retire with $2,500,000 35 years later. If you invest in an account paying 4.5% compounded monthly, and you make monthly payments, how much money will you need to put away every month in order to retire with $2,500,000?

b. What is the total amount of money that you invest in this account over the 35 years?

c. Suppose that instead of putting away the money in monthly installments you invest one lump sum at the start and let it accumulate interest for 35 years in this account. How much money would you need in this lump sum in order to have $2,500,000 after 35 years?

d. Suppose that you decided to invest into an account paying 4.85 % compounded quarterly for 25 years and allow the money stay in the account for another 10 years. How much money will you need to put away every quarter in order to retire with $2,500,00

Reference no: EM131732904

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