Go to the savings calculator in the banking section of www.bankrate.com to estimate how your savings will grow.
a. By inputting an investment amount, the monthly deposit, the return, and the period of investment, you can calculate the value of your investment. Input $5,000 as the initial investment, $100 for the monthly deposit, and 3% for the return. How much will your investment be worth in twenty years?
b. Now change the monthly deposit to $300. How much will your investment be worth in twenty years?
c. Now change the period of investment to thirty years. How much more money will you be able to accumulate in thirty years as opposed to twenty, using the original $100 monthly deposit amount?
d. Now change the rate you can earn on your investment from 3% to 6% and evaluate the results.