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
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