Funding in an emergency fund

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1. Discuss the reason and importance of an emergency fund. What is your desired level of funding in an emergency fund and why?

2. Do you consider yourself a nerd or free spirit? How does your personality impact your approach to managing money?

3. If you save $1,200 per year and the money compounds at a simple 8.0% rate how much money will you have in 20 years? What lump sum could you invest today to have the same amount in 20 years? If you save $100 per month at the same 8.0% rate how much money will you have in 20 years? What is the amount in 20 years if the 8.0% is compounded monthly?

Reference no: EM131549960

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