What amount of money must be set aside each month

Assignment Help Financial Accounting
Reference no: EM132837478

Question - 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?

Reference no: EM132837478

Questions Cloud

How to manage and monitor success of the interventions : Your principal recognizes your leadership role and that you have utilized data to inform instruction and has asked that you create a digital presentation.
Emphasizes the importance of ethical norms : What if you work at a global company that emphasizes the importance of ethical norms for operating internationally and across multiple cultures for all its empl
How you communicate with parents regarding struggling reader : How do you plan to include parents in reading and writing literacy? Explain how you will communicate with parents regarding a struggling reader.
Please explain the types of communication : Please explain the types of communication that invalidate people. And describe the attributes of validating communication.
What amount of money must be set aside each month : 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
Limbaugh on drug addiction : Debates on the distribution, sale, and use of illegal drugs have been prominent in United States politics for the past several decades. Political commentator an
How each school team modeled effective collaboration : Describe how each school team modeled effective collaboration including communication with families. Share at least two points regarding data collection.
Describe big five personality dimension of emotional : Describe the Big Five personality dimension of emotional stability and discuss how it can predict behavior at work.
How do good leaders become bad leaders : How do good leaders become bad leaders? Do not answer in simplistic terms like 'they become greedy' or 'they are greedy.'

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd