At What Constant, Continuous Annual Rate Should You Deposit Money

question 72

Short Answer

At what constant, continuous annual rate should you deposit money into an account if you want to have $1,000,000 in 20 years? The account earns 5% interest, compounded continuously. Round to the nearest dollar.

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Definitions:

Form a Corporation

The legal process of creating a corporate entity, recognized by law as separate from its owners with its own rights and liabilities.

Defective Incorporation

A situation where a company has not completed its incorporation process correctly resulting in potential legal and financial liabilities for its purported directors and shareholders.

Promoter

An individual or entity that initiates the formation of a company or organization and helps it to set up by raising the required funds or fulfilling the legal requirements.

Fiduciary Duty

A duty under the law for one individual to prioritize the well-being of another when given responsibility over finances or assets.