Plan a savings and investing plan to reach a total savings of $1,000,000. Our Minor Project requires you to plan 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, with an annual return rate of 8%. Because the gains are reinvested, the investment is subject to annual compounding. How does this change our calculations.
show your calculations and include your results in a table, for ease of comparison.

Answer rating: 100% (QA)

To reach a total savings of 1000000 in 30 years from today we need to determine the monthly amount t... View the full answer