Planning to retire in 15 years and expect to need $400,000.?

Question

How much we invest today at 9.4% compounded quarterly to accomplish this goal?

How much should we invest...round to the nearest $100

Answer 1

Let Find the yearly interest if it compound quarterly
9.4/4 = 4.7
100(1+0.047)(1+0.047)(1+0.047)(1+0.047)=120.17
Yearly interest = 20.17%

Find Capital
400000 =X(1+.2017)^15
x = 25500

there go your answer 25500

Answer 2

$100,000 should do it, if the interest rate stays steady. You'll get a couple of thou over your goal, but who's counting thousands? If you want to check it out, go to http://www.moneychimp.com/calculator/compound_interest_calculator.htm.

If you have a steady income, you could lower your initial investment (starting capital) by adding extra to it every year. That calculator will let you include that.

Answer 3

I'll figure it out if you tell me where you can get 9.4% guaranteed for 15 years

Answer 4

if this is a real question, there are no investments that pay that much.not something that does not require work.............