Answer:
b. $7,482.
Step-by-step explanation:
20,403 nets $5,996,106 after 35 years.
7,482 nets $2,198,837 after 35 years.
$7,482 is over 2 million and the smallest amount, so you don't have to solve for the other ones.
The real amount that must deposit each year to achieve your goal is $16,017 option (c) is correct.
An investment is a payment made to acquire the securities of other firms with the intention of making a profit.
First, we will calculate the real rate of interest:
r = [(1+nominal rate)/(1+inflation rate)] - 1
Nominal rate = 9.94% = 0.094
Inflation rate = 3.2% = 0.032
r = [(1+0.094)/(1+0.032)] - 1
After calculating,
r = 0.0653 or 6.53%
Deposit amount each year:
Future value = PV[(1+r)ⁿ - 1]/(r)
2000000 = PV[(1+0.0653)³⁵ - 1]/(0.0653)
After calculating,
PV = $16020.544
The value $16020.544 is near the $16,017.
Thus, the real amount that must deposit each year to achieve your goal is $16,017 option (c) is correct.
Learn more about the invested amount here:
brainly.com/question/16995381
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