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Targeted retirement

Suppose you want retire when you have $1,000,000. If the interest rates paid by banks on individual retirement accounts (IRAs) rise from 4 percent to 8 percent, what will happen to the time it takes to reach your targeted retirement savings amount?

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If the interest rates rise, the time taken would reduce as we would earn higher interest on our savings and so ...

Solution Summary

The solution explains how to determine the effect on the time taken to get a desired amount on retirement if the interest rates change