Question
In: Finance
Our Minor Project requires you to create a savings and investing plan to reach a total...
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.
- 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?
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?
Solutions
Expert Solution
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.
jeff jeffy answered 2 years agoRelated Solutions
Our Minor Project requires you to create a savings and investing plan to reach a total...
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.
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?
Assume that the money is placed in a checking account that pays
a 2% interest rate. The interest is compounded annually. What...
You are investing in a project that requires an initial investment of $500,000. The project will...
You are investing in a project that requires an initial
investment of $500,000. The project will last for 10 years with the
following additional cash flows (CF) at the end of each year:
If the discount rate is 10%, calculate the payback periods in
Excel for both the methods below;
Years
1
2
3
4
5
6
7
8
9
10
CF
-500,000
80,000
100,000
100,000
120,000
140,000
150,000
150,000
150,000
150,000
a) Payback Method [10]
b) Discounted Payback Method...
Create a project plan on the game or application you are creating. The project plan should...
Create a project plan on the game or application you are
creating. The project plan should include the following:
A description of the game or application
The IDE or game engine your plan to use to create the game or
app and information on how you are going to develop the game or
app
If you choose to create a game, how are you going to approach
the game design and game development process or if you choose an
application...
You are considering investing in a project that requires an up-front investment of $1,100,000 and is...
You are considering investing in a project that requires an
up-front investment of $1,100,000 and is expected to produce NOI
for the four year holding period as follows: Year 1: $81,000, Year
2: $96,000, Year 3: $104,000, Year 4: $113,000. Also, at the end of
the fourth year, the property can be sold for $1,250,000. Selling
expenses will be 5 percent. You plan to finance 70 percent of the
up-front investment with a 15 year loan at 7 percent interest...
The Gamma Company is planning on investing in a new project. This project requires an initial...
The Gamma Company is planning on investing in a new project.
This project requires an initial investment into a new machinery of
$420,000. The Gamma Company expects cash inflows from this project
to be as follows: $200,000 in year 1, $225,000 in year 2, $275,000
in year 3, and $200,000 in year 4 of the project. If the
appropriate discount rate for this project is 16% then the NPV of
the project is closest to _____________________.
Group of answer choices...
The Gamma Company is planning on investing in a new project. This project requires an initial...
The Gamma Company is planning on investing in a new project.
This project requires an initial investment into a new machinery of
$420,000. The Gamma Company expects cash inflows from this project
to be as follows: $200,000 in year 1, $225,000 in year 2, $275,000
in year 3, and $200,000 in year 4 of the project. The appropriate
discount rate for this project is estimated at 16%. What is the IRR
of this project?
Group of answer choices
31.2%
26.7%...
An investor is considering investing in a capital project. The project requires an outlay of £500,000...
An investor is considering investing in a capital project. The
project
requires an outlay of £500,000 at outset and further payments
at the end
of each of the first 5 years, the first payment being £100,000
and each
successive payment increasing by £10,000.The project is
expected to provide a continuous income at a rate of
£80,000 in the first year, £83,200 in the second year, and so
on, with
income increasing each year by 4% per annum compound. The
income...
This third project requires you to invent a merchandising business. You are required to create the...
This third project requires you to invent a
merchandising business. You are required to
create the financial statements for its
first year of
operations:
Create your company’s multi-step
income statement for the year ended
12/31/18.
Create the retained earnings statement for the
year ended 12/31/18.
Create the classified balance
sheet dated 12/31/18.
Give me a simple sentence
about what your business sells. It can be stated before or after
the financial statements.
Hints and reminders:
Make sure the statements ‘flow’...
A company is considering investing in a project that requires the company to take on risks...
A company is considering investing in a project that requires
the company to take on risks outside of the company's current
scope. As a result, which of the following things will happen?
Select one:
a. The company's stock value would drop unless the project
increase the company's expected returns.
b. The company does not have to recalculate its WACC to evaluate
the project.
c. All of these things.
d. The project would decrease the company's cost of equity.
Micheal wants to have $68,000 in 10 years on a savings plan that requires monthly contributions....
Micheal wants to have $68,000 in 10 years on a savings plan that
requires monthly contributions. If he can earn 11 percent APR with
monthly compounding on the savings plan, what is the amount that he
will have to invest every month for the next 10 years? Round it to
two decimal places and do not include the $ sign, e.g.,
1234.56.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- MARGI sells different types of wine. Customers place orders to the most popular “Summer Wine” at...
- Java. If possible please put explanations for each line of code. Write a test program that...
- . Use the following information to calculate your company's expected return State Probability Return Boom 20%...
- You are considering the following two projects and can only take one. Your cost of capital...
- C++: Write a program that produces truth tables for the following compound propositions. Write the header...
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
ADVERTISEMENT