Solution-Why does it take more per month when she is

Why does it take more per month when she is putting money

Assignment Help Finance Basics

Reference no: EM131149938

We return to Denise, our hopeful millionaire from Chapter 4 (Example 4.3) and this chapter (Example 5.2). In Chapter 4, Denise was putting away $5,000 per year at the end of each year at 6% interest, with the expectation that in forty-four years she would be a millionaire. If Denise switches to a monthly savings plan and puts one-twelfth of the $5,000 away each month ($416.66), how much will she have in forty-four years at the 6% APR?

Why is it more than the $1,000,000 goal? In this chapter, Denise was putting away $546.23 for thirty years at 9% to become a millionaire.

Why does it take more per month when she is putting money away at 9% than when she was earning a lower rate of 6% over the forty-four years?

Reference no: EM131149938

Questions Cloud

Explain activities that take place during each phase of sdlc : They have asked you to develop a presentation that explains the activities that take place during each phase of the SDLC to ensure software development success.

Describe your feelings about working in team : Describe your feelings about working in a team, your feelings about the results of the strengths assessment and if your self perceptions are in any way in conflict with the assessment results.

What is the amortization schedule of these sixty payments : Moulton Motors is advertising the following deal on a new Honda Civic: “Monthly Payments of $400.40 for the next 60 months and this beauty can be yours!” The sticker price of the car is $18,000. If you bought the car, what interest rate would you be ..

Firm produces tractors and lawn mowers : A firm produces tractors and lawn mowers and make a profit of $30 on each tractors and $30 on each lawn mower. And they sell all they can produce. The time requirement in the machine shop, fabrication, and tractor assembly as well as the maximum time..

Why does it take more per month when she is putting money : Why does it take more per month when she is putting money away at 9% than when she was earning a lower rate of 6% over the forty-four years?

Describe the cisco campus architecture : Describe the Cisco Campus architecture, and explain the primary reasons why it is important for AtoZ Insurance. Provide a rationale for your response.

What is the relationship between the type of data and tools : Determine the category of the provided data in the given case study. Be sure to justify why the data fits into this category type. What is the relationship between the type of data and the tools

What is the null and the alternative hypotheses : What is your recommendation to the president based on expected value that maximizes profits (EMV). Provide a second recommendation to the president that minimizes regret.

What will be the value of matt''s account in ten years : What will be the value of Matt's account in ten years with his monthly payments if he is earning 6% (APR), 8% (APR) or 12% (APR)?

User Account

All Pages

Why does it take more per month when she is putting money

Reference no: EM131149938

Reference no: EM131149938

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT