Hi everyone! Can you help me with couple problems
I have a grandson who is just about to be born. He will be here by January 1.
Question #1, what if you were to put $25.oo into a savings account for him every month, for 15 years with interest compounded monthly. At the end of 15 years, you put the total investment value into a savings with no further deposits but compounded monthly. Assume the best you can get is 5% interest. What would he have when he turns 66?
Question #2; Assume you had saved $35.00 a month since you were 18 years old. when you got to be 70, the age at which you must begin withdrawing all retirement plans, how much money would you end with?
Question #3; Assume you had a very wonderful granddad. When you were born, he wanted you to have an investment plan that would give you $1,000,000.00. So, he set it up and he invested until you turned 18. Then, it was your duty to continue the investment. He wanted you to have $1,000,000.00 when you turned 70. Assume the best average interest rate for the period is 7%. what is the amount of monthly deposit that would be required.