Find the future value of investment plan

Reference no: EM1349514

Assume that you are setting up your retirement plan by considering two investment plans together. (your retirement in 30 years). You want to earn a total of $1,000,000 after 30 years from two investment plans.
o First investment plan: You currently have $40,000 in the bank and decide to invest the $40,000 in a money market account for 30 years which you feel will generate a return on 6% per year.
o Second investment plan: You also intend on investing additional money at the end of each year for 30 years in a stock market mutual fund that you believe will return 10% per year.
Question:
In your second investment plan, if you make 30 equal annual investments at the end of each year for 30 years into the stock market mutual fund, how much will you need to invest each year in order to have a total of $1,000,000 from both investment plans after 30 years?
(Total of $1,000,000 is the sum of your two investments after 30 years)

Reference no: EM1349514

Questions Cloud

Effects of moral or legal reasoning on specific decision : Give a brief description of the relationship among and between critical thinking, moral reasoning, legal reasoning, and aesthetic valuing. Then describe the effects of moral or legal reasoning on a specific decision one can made.

Analyze two managerial plans : A cost behavior analysis indicates that 75% of the cost of goods sold are variable. 50% of the selling expenses are variable, and 25% of the administrative expenses are variable.

Change for organizational success : Change can come in the form of technical change, transition change change in mission and goals, but not the essential means or work processes

Explain an organization that sets up one or a few facilities : Explain An organization that sets up one or a few facilities in one or a few foreign countries is known as an international organization

Find the future value of investment plan : Suppose that you are setting up your retirement plan by planning two investment plans together. You want to earn a total of $1,000,000 after 30 years from two investment plans.

How long after the beginning of the power failure : At what rate is the flywheel spinning while the power comes back on. How long after the beginning of the power failure would it have taken the flywheel to stop if the power had not come back on.

Critical thinking and social justice : Give a summary of the benefits, challenges, and implications of applying critical thinking skills to social justice issues in general.

Organizational changes : Explain wat instances are individual efforts needed more than those of a group and what might help to determine which are most needed?

Determining operating income : GHI Company makes light-weight canoes for campers. The president, George Ingalls, enlists your help in predicting the effects of some changes he is contemplating. He gives you the following information:

User Account

All Pages