Question

You want to be a millionaire when you retire in 40 years. a. How much do you have to save each month if you can earn an annual return of 10.8 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much do you have to save each month if you wait 15 years before you begin your deposits? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How much do you have to save each month if you wait 25 years before you begin your deposits?

Answer 1

It all depends on what job you have.

Explanation: If you have a job that pays good, you wouldn't have to save much. If you have a job that barely pays, you will have to save more, remember, bills and house payments would also affect how much you will have to save back.