+20 Today, you turn 23. Your birthday wish is that you will be a millionaire by your 40th birthday. In an attempt to reach this goal, you decide to save $75 a day, every day, until you turn 40. You open an investment account and deposit your first $75 today. What rate of return must you earn to achieve your goal?
The rate of return will be: 8.09% compounded daily. The formula you would use for this is this one:
FV=P{[1 + R]^N - 1/ R}=FV OF $1 PER PERIOD.Where R=Interest rate per period, N=number of periods, P=periodic payment, FV=Future value.
However, you cannot calculate the interest above DIRECTLY. My computer uses iterartion and interpolation to calculate that.
