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?
- Assume that the money is placed in a checking account that pays
a 2% interest rate. The interest is compounded annually. What
amount must be deposited each month to reach our goal?
- For our third scenario, assume that the money is invested in an
index fund annually, with an annual return rate of 8%. Because the
gains are reinvested, the investment is subject to annual
compounding. How does this change our calculation?
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? Please, include a discussion of each of the 3
scenarios above.
While there is not a minimum page requirement for the
assignment, your submission must include your calculations, the
table with your results and a discussion of each scenario, in your
own words.