Saving; How well will you invest?

List your salary:

List an amount you would like to invest for savings:

You now have some extra money to invest. You are going to invest it for 10 years in a savings account.

You will be placing this money in a savings account that compounds monthly (for ten years!). Find and print an advertisement for an interest rate for a savings account that you are going to use for your savings account that will compound monthly. Highlight the interest rate on the printout.

Use the interest rate from the advertisement as the interest rate for your savings account. How much money will you have in your account at the end of ten years? (Remember: your money is compounding monthly for 10 years!) Show this calculation.

How much interest will you earn at the end of ten years? Show this calculation.

When comparing what you had before you put the money into the savings account to what you will have at the end of ten years, what will the percent of increase be? Show this calculation.

Since the money you earned is now tied up earning interest, you need to start saving for the next purchase. However, you need to know how much to invest now in order to pay for it later, if later is in one year.

Sofa (couch), Coffee table, TV, Dresser (minimum 3 drawers), Bed

How much is your next purchase? Pick one of the above items and find an advertisement or flyer that shows the cost of your next purchase. You must include this printout in your project. Highlight the item on the printout.

How much money do you need for this next purchase? Use the present value formula to determine how much money you need to invest in order to afford your next purchase in one year. You may assume that you are investing in a CD that has an AMAZING rate of 12.3% and is compounded quarterly. Show this calculation.