Today, you turn 21. 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? note: ignore leap years.

rate of 0.000171716533316905 = 0.017% daily

Explanation:

we need to solve for the rate of an annuity for 19 years with daily deposits of 75 dolllars to yield a principal of 1,000,000 dollars

365 days x 19 years = 6,935 days

we use goal seek on excel as follow:

on A1 we write 0.01 this will be a placeholder for the rate

then on A2 we write  =FV(A1;6935;75)

then with goal seek we definethat we want A2 equal to 1,000,000 changing A1 (rate)

which give us:

0.000171717  = 0.017% per day to achieve the goal:

C75

time6935

rate0.000171717

FV$999,999.9999  

answer; is the sum of all individual demands curves;

answer; measurable outcome;