1. Your parents will retire in 18 years. They currently have $ 250,000, and they think they will need $ 1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?
2. You have $ 42,180.53 in a brokerage account, and you plan to deposit an additional $ 5,000 at the end of every future year until your account totals $ 250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?
The solution explains some questions relating to time value of money