Youve decided that you want 1000000 in your investment accou

You’ve decided that you want $1,000,000 in your investment account when you retire 25 years from today. If you already have $100,000 in the account, and it earns a nominal rate of 8% per year, compounded quarterly, how much money will you have to deposit into that account per year in order to reach your goal?

Solution

Final amount after 25 years 1,000,000 dollars

Principal now = 100000

Rate of interest 8% compounded quarterly

How much per year to be invested to get 1,000,000 after 25 years?

By using calculations we get if an amount of 116499/- invested every year for compouding quarterly final amount will be 1,000,000 dollars.