A gal who wants to be a millionaire, plans to retire at the end of 40
years.  Her plan is to invest her money by depositing into an IRA at
the end of every year, what is the annual amount that she needs to
deposit in order to accumulate one million dollars?  Assume that the
account will earn an annual rate of 11.5%.  Round off to the nearesr
$1.

Dear k9queen-ga,

With our friend the moneychimp, let's make this gal a millionaire.

Current Principal:  $0    
Annual Addition: $1,343    
Years to grow: 40      
Interest Rate: %11.5
Compound interest  time(s) annually 
=Future Value: $1,000,000
http://www.moneychimp.com/calculator/compound_interest_calculator.htm

She will have to add $1,343 each year to meet her goal of one million
dollars.

Unfortunately for her, an annual inflation rate of only 2% will mean
those million dollars will only be worth $452,890.42 of today's
dollars.  Still, it beats Social Security!

Future Value:  $1,000,000    
Years: 40       
Discount Rate: 2% 
= Present Value: $452,890.42 
http://www.moneychimp.com/calculator/present_value_calculator.htm

Related links:
http://www.moneychimp.com/
http://www.fool.com/

Sincerely,

sweetcaro333-ga

very clear and fast!

Thanks k9queen-ga, so why only 4 stars?

5 stars insinuates perfection right?!
I would say 4 stars is VERY good!