Week 6: Finance Lesson on Interest (In Class)

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)? $39,500.23

2. If you put $500 into a regular savings account in the bank when you are 30 years old, and add $50 each month, how much will you have when you are 68 years old (38 years later)? $28,301.40

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)? $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 (38 years later)? $283,013.98

5. If you put $5000 into a regular savings account in the bank when you are 40 years old, and add $500 each month, how much will you have when you are 68 years old (28 years later)? $199,381.03

6. If you put $1000 into a regular savings account in the bank when you are 20 years old, and add $100 each month, how much will you have when you are 68 years old (48 years later)? $75,079.36

This makes me think that I need to make sure I save up more than I originally plan at 20 years old to make sure I have enough for retirement.