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Question - Alexandra invested $800 at the end of every month in an investment fund that was earning interest at a rate of 4.02% compounded monthly. He stopped making regular deposits at the end of 5 years when the interest rate changed to 6.81% compounded quarterly. However, he let the money grow in this investment fund for the next 5 years.
Required -
a. Calculate the accumulated balance in his investment fund at the end of 5 years.
b. Calculate the accumulated balance in his investment fund at the end of 10 years.
A 35 year old worker decides he wants to retire as a millionaire. How much does he need to invest each year to meet his retirement goal?
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