What is compounding how does compounding affect your savings

Reference no: EM133363405

Question: This week we are discussing savings and depository and non depository institutions that help us to save our money.

What is compounding?
How does compounding affect your savings?
If you were to save $1000 a year for the next 20 years, at an interest rate of 5%, how much money would you have in 20 years? Please show your math. How much interest will you earn in that time period? Please show your math.
If you were to save $2000 a year for 10 years, at an interest rate of 5%, how much money would you have in 10 years? Please show your math. How much interest will you earn in that time period? Please show your math.
Given the information in the primer and in our text, do you think you will try to start saving early in life, and why?

Reference no: EM133363405

Questions Cloud

Analyze how patagonia mission statement : Analyze how Patagonia's mission statement addresses the eight components of an effective mission statement:

White-collar crimes in the workplace : There are many white-collar crimes in the workplace executed by high self-esteem employees.

Define mental health concerns-issues in collegiate athletics : What is the methodology and design used when researching the topic of Mental Health Concerns/Issues in Collegiate Athletics?

Show how god uses the works of the church to further : show how God uses the works of the Church to further His Kingdom - The paper will delve into the bigger ideas and significance of Ephesians 4:7-16 and reveal

What is compounding how does compounding affect your savings : What is compounding? How does compounding affect your savings? If you were to save $1000 a year for the next 20 years, at an interest rate of 5%

Tools used in home renovations and operates : House Depot rents out tools used in home renovations and operates seven days a week. Tools can be rented out either on a weekly or monthly basis.

How much of each type of meat did he purchase : Bennett purchased some beef and some chicken for a family barbeque. The beef cost $6.10 per pound and the chicken cost $3.10 per pound.

What are four issues nehemiah faced in the bible : EDAS 742 Liberty University What are four issues Nehemiah faced in the Bible as it relates to public relations and how did he use communication and leadership

Calculate the net present value and profitability index : Calculate the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number

User Account

All Pages