Assume you are saving for retirement with the same stipulations as before (10% of your income at a rate of 8.25% for the account).
How long would it take for your account to reach $1 million dollars? (Keep your answer in years.)
How long would it take a high school graduate to reach $1 million dollars? (Use years for this also.)
Compare the amount of time taken to reach $1 million for you and the high school graduate. Use an
absolute change sentence to compare your answers.
Is $1 million dollars a good goal to have for retirement? Why or why not? Are you surprised by the amount of time that it takes to save $1 million dollars? What are some general observations about the high school graduate’s amount of time to achieve the $1 million-dollar amount in retirement savings? In what ways did this project change you mind about your career choice?
Sample Solution