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Future value with periodic rates. Denise has her heart set on being a millionaire. She decides that at the end of every year, she will
Future value with periodic rates. Denise has her heart set on being a millionaire. She decides that at the end of every year, she will put away $ into her "I want to be a millionaire account" at her local bank. She expects to earn annually on her account.
a How many years must Denise faithfully put away her money to succeed at becoming a millionaire?
bIf Denise switches to a monthly savings plan and puts onetwelfth of the $ comma away each month $ how much will she have in years at the APR
cWhy is the future value under the monthly savings plan more than the $goal
Next let's assume Denise is now thirtyfive years old and thus has thirty years for saving toward her onemilliondollar goal. She anticipates an APR of on her investments.
d How much does she need to save each year to become a millionaire by age sixtyfive if she puts money away annually?
eHow much does she need to save if she puts money away monthly?
fWhy does it take more per month when she is putting money away at than when she was earning a lower rate of over the years
Note:Ignore the effect of taxes on your calculations
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