In: Finance
Our Minor Project requires you to create a savings and investing plan to reach a total savings of $1,000,000.
The objective is to accumulate $1,000,000 in savings, in 30 years from today.
Please, show your calculations and include your results in a table, for ease of comparison.
Based on the above calculations, how difficult is it to become a millionaire?
Savings required in 30 years =$1000000
As there is no investment and no interest ,so there will not be any compounding.
Savings required per year = $1000000/30 =$ 33333.3333
So, saving required per month =$ 33333.3333/12 = $ 2777.7777
So, one need to set aside $2777.777 per month to have $1000000 after 30years from now.
Based on above calculations we can say,it is easy to become a millionaire by saving $2777.7777 every month. But it will take 30years to become a millionaire which is a long time.