Algebra II.3.E.33 - The Million Dollar Problem – Exit Ticket
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Last updated almost 3 years ago
2 Questions
10
1.
At age 25, you begin planning for retirement at 65. Knowing that you have 40
years to save up for retirement and expecting an interest rate of 4% per year
compounded monthly throughout the 40 years, how much do you need to deposit
every month to save up $2 million for retirement?
10
2.
Currently, your savings for each month is capped at $400. If you start investing
all of this into a savings plan earning 1% interest annually, compounded
monthly, then how long will it take to save $160,000? (Hint: Use logarithms.)
From EngageNY.org of the New York State Education Department. Grade Algebra II Mathematics Module 3, Topic E, Lesson 33. Internet. Available from https://www.engageny.org/resource/algebra-ii-modul...; accessed 21/Apr/2016.