In this week’s discussion we are going to write a problem involving the formula for regular payments needed to achieve our own financial goals. Your postings in the discussion will be in two parts:
Part 1 (must be completed before you reply to another student):
Determine a goal that you would like to save. Answer the following questions about that goal:
- What is your goal that you would like to save?
- How much do you need to save to meet your goal?
- How long do you have to achieve your goal?
- Suppose that you anticipate making regular, end of month deposits in an annuity that pays 6% compounded monthly. How much should you deposit each month? How much of the goal amount comes from deposits and how much comes from interest?
- Is the goal realistic in the time frame that you selected? Research the interest rates on annuities. What are the most recent returns on annuities? What adjustments would you need to make to meet your goal based on the most recent return on annuities?
- Write a short paragraph describing what you found and the conclusions based on the most recent return on annuities. Be sure to cite the source of your interest rate and use complete sentences and proper grammar in your posting. You may upload a picture of your calculations, type in the discussion box, or record a video.