Monday, July 21, 2014

Interest Rates


1. If you put $500 into a regular savings account in the bank when you are 18 years old, and add $50 each month, how much will you have when you are 68 years old (50 years later)?

Answer: $822.32

3. If you put $500 into a regular savings account in the bank when you are 40 years old, and add $50 each month, how much will you have when you are 68 years old (28 years later)?

Answer: $19,938.10

4. If you put $5000 into a regular savings account in the bank when you are 30 years old, and add $500 each month, how much will you have when you are 68 years old (50 years later)?

Answer: $395,002.25

Makes me think that I should save up to put a lot of money in when I start a savings account and add a significant amount of money each month. I should start saving earlier than later as well (which I am).

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