Question
I need the formulas in excel: Thank you Thomas wants to save money. He's looking at his buying habits and has realized that he can
| I need the formulas in excel: Thank you Thomas wants to save money. He's looking at his buying habits and has realized that he can save $2 per day if he brings coffee from home rather than buying it on campus. Because he buys coffee every single day (Monday through Friday), this works out to a savings of $10 per week - or $520 per YEAR. | |||||||||
| a. If Thomas is 20 years old today (Happy Birthday) and plans to retire at age 60 (he'll work until the day before he turns 61), how much will he have accumulated in savings if he invests the $520 per year in the stock market (which has had an average annual return of 8%). Assume for simplicity that he invests at the END of each year. Show how his savings accumulate by filling in the table below. | |||||||||
| b. This savings problem has Thomas pretty excited. He's identified a list of unnecessary expenditures that he can cut out. If he cuts out all the expenditures listed in the table below, how much richer will be be when he's 65? Assume that he invests in the stock market and earns an 8% annual return. (He'll save for 41 full years) | |||||||||
| Part a | Part b | ||||||||
| Value drivers: | Value drivers: | ||||||||
| interest rate | interest rate | ||||||||
| annual savings | number of years of saving | ||||||||
| savings at age 60 | |||||||||
| Age | Amount saved at the beginning | Amount invested at the end | Return on investment (like interest earned) | Amount in account at the end of the year | Item | Weekly Savings | Yearly Savings | Future value at age 65 | |
| 20 | Coffee at home vs at school/work | $ 10 | $ 520 | ||||||
| 21 | Bringing own lunch | $ 35 | $ 1,820 | ||||||
| 22 | Only drinking alchohol 1 day per week | $ 30 | $ 1,560 | ||||||
| 23 | Cigarettes | $ 25 | $ 1,300 | ||||||
| 24 | Total money saved by the time he's 60: | ||||||||
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An Empire In Pawn Being Lectures And Essays On Indian Colonial And Domestic Finance Preference Free Trade Etc
Authors: A. J. (Alexander Johnstone) Wilson
1st Edition
1290631565, 9781290631563
