You have decided that you want to be a millionaire when you retire in 45 years. Required:
a. If you can earn an annual return of 11.04 percent, how much do you have to invest today?
b. What if you can earn an annual return of 5.52 percent?

Answer and Explanation:

The computation is shown below:

We use the formula that is given below:

Invested amount = $1,000,000 present value

Present value = 1 ÷ (1 + rate of interest)^number of years

a.

The amount invested is

= $1,000,000 ÷ (1.1104)^45

= $8,983.07

b,

The amount invested is

= $1,000,000 ÷ (1.0552)^45

= $89,111.71

the second one is 3mm

because i just took the test