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How Many Years Would It Take for Harry to Save

question 58

Multiple Choice

How many years would it take for Harry to save an adequate amount for retirement if he deposits $2,000 per month into an account beginning today that pays 12 percent per year if he wishes to have a total of $1,000,000 at retirement?


Definitions:

Interest Rate

The fraction at which a lender charges interest to a borrower for the amount of money lent.

Investment Guaranteed

A financial product promising the return of the principal amount plus predetermined earnings, minimizing risk for the investor.

Investment Value

The worth of an asset or security at a specific point in time, taking into account factors such as market conditions and risk.

Interest Earned

The amount of money earned over a period of time through investments or savings that accrue interest.

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