question archive Hello, could someone help me with this? The objective is to accumulate $1,000,000 in savings, in 30 years from today
Hello, could someone help me with this? The objective is to accumulate $1,000,000 in savings, in 30 years from today
Subject:AccountingPrice: Bought3
Hello, could someone help me with this?
The objective is to accumulate $1,000,000 in savings, in 30 years from today.
1)What amount of money must be set aside each month, to reach our goal, assuming that the money is not invested and no interest is earned?
2)Assume that the money is placed in a checking account that pays a 2% interest rate. The interest is compounded annually. What amount must be deposited each month to reach our goal?
3)For our third scenario, assume that the money is invested in an index fund annually, with an annual return rate of 8%. Because the gains are reinvested, the investment is subject to annual compounding. How does this change our calculation?
