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14 June, 10:56

Imagine that your goal is to retire 34 years from today with / $1,000,000$1,000,000 in savings. Assuming that you currently (i. e., today) have / $5,000$5,000 in savings, what rate of return must you earn on that savings to hit your goal? (Hint: Solve your future value formula for the discount rate, RR) * Make sure to input all percentage answers as numeric values without symbols, and use four decimal places of precision. For example, if the answer is 6%, then enter 0.0600.

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  1. 14 June, 13:34
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    Present value after 34years = 1000000

    Cash flow at present = 5000

    Using

    PV = CF (1+R) ^t

    1000000=5000 (1+R) ^34

    R=1.169-1

    R=0.168 (16.8%)
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