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Wilson has decided to retire once he has $2,000,000 in his retirement account. At the...

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Finance

Wilson has decided to retire once he has $2,000,000 in his retirement account. At the end of each year, he will contribute $8,000 to the account, which is expected to provide an annual return of 8.5%. How many years will it take until he can retire? (Round to the nearest year.)

a. 43 years b. 34 years c. 38 years d. 37 years e. 42 years

Suppose Wilson's friend, Tony, has the same retirement plan, saving $8,000 at the end of each year and retiring once he hits $2,000,000. However, Tony's account is expected to provide an annual return of 10.1%. How much sooner can Tony retire? (Round to the nearest year.)

a. 4 years b. 6 years c. 5 years d. 7 years e. 8 years

After 25 years, neither Wilson nor Tony will have enough money to retire, but how much more will Tony's account be worth at this time?

a. 169,363 b. 109,283 c. 186,514 d. 289,671 e. 215,877

Wilson is jealous of Tony because Tony is scheduled to retire before him, so wilson decides to make whatever end-of-year contribution is necessary to reach the $2,000,000 goal at the same time as Tony. If wilson continues to earn 8.5% annual interest, what annual contributions must he make in order to retire at the same time as Tony?

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