Recently in class, we have been talking about investing and compound interest. However, I feel that many students lack the connection between this subject and their real lives. So here's a question you may want to answer: When do you want to have a million dollars saved up when you retire? So to give you an idea as to when you should start investing, answer this question.....
A) Say you started at age 25, by investing 5,000 dollars once a year, every year, and that inputted money earns a return of 10% compounded annually, how long will it be until you crack the one million dollar mark?
*Hint* Use a Google Docs spreadsheet to find the answer*Hint*
If you still can't find the answer then try using the summation formula from Trigonometry!
ReplyDeleteWell, I thought it was 52.4 years, but was sadly shot down. :(
ReplyDeleteFinal hint, open a spreadsheet in google docs. In cell A1 type in your beginning amount. In cell B1 type in =(then click on A1)*1.1. In cell A2 continue the pattern of adding 5000 every year by *hint* Adding it to the amount in B2. Then continue the spreadsheet and see if you can find the answer.
ReplyDelete