Reference no: EM132076976

Historically, stock market returns have averaged 10% per year over the long term. You plan to retire in 35 years, and you want to have $1,500,000 saved by the day you retire.

a.) How much do you need to invest now if you can earn 10% compounded annually for the next 35 years?

b.) If you can only invest $35,000 now, what interest rate would you need to earn (compounded annually) in order to have $1,500,00 35 years from now?

c.) If you can only invest $35,00 now at 10% compounded annually, how many years from today would you have to work in order to have $1,500,000 on the day you retire?