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Objective The purpose of this activity is to understand the impact of compound interest. Directions Go to the Investment Calculator Tool on www.foundations.com and calculate
Objective The purpose of this activity is to understand the impact of compound interest. Directions Go to the Investment Calculator Tool on www.foundations.com and calculate what your investment will be worth if you invest $500 per month during your entire working lifetime (age 25 to 65 = 40 years). Specific directions are as follows: 1. Begin with $1,000 in your current investment. 2. Contribute $500 per month for the next 40 years. 3. Try three different rates of return (8%, 12%, and 15%). 4. How much is each investment worth after 40 years of investing? 1.8% is worth $ 2. 12% is worth $ 3. 15% is worth $
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