1. You earn $8,000 a month. After taxes, social security contributions, and living expenses you have $400 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate is of return is 12%. Interest is compounded monthly. Your first deposit is made at the end of month 1. We are looking for the value of your savings 30 years from the time you stated saving.
2. You earn $8,000 a month. After taxes, social security contributions, and living expenses you have $200 per month that you can and will save. What is the future value of $200 saved every month for 30 years if the annual rate is of return is 6%. Interest is compounded monthly. Your first deposit is made at the end of month 1. We are looking for the value of your savings 30 years from the time you stated saving.
3. You earn $4,000 a month. After taxes, social security contributions, and living expenses you have $600 per month that you can and will save. What is the future value of $600 saved every month for 30 years if the annual rate is of return is 4%. Interest is compounded monthly. Your first deposit is made at the end of month 1. We are looking for the value of your savings 30 years from the time you stated saving.
4. You would like to accumulate $1 million over the next forty years. This means you would like your wealth to be $1 million at the end of 40 years. You are planning to invest money at the end of each year for the next forty years beginning at the end of the first year.
If you invest $2,000 a year and earn 12% interest per year (compounded annually) will you meet your financial goal.
Yes or no?