Section 1

Connect

 

Going Beyond

 

So, do you still want to become a millionaire?

 

Suppose you had saved $2000 from your part-time job and invested this sum at 3% compounded annually for 50 years. At the end of 50 years, without investing a cent more, you would have $8767.81. But suppose you saved $100 a month and added $1200 to your investment at the end of each year.

 

Use the Simple Interest - Compound Interest Calculator to answer the following questions.

1. Change the yearly investment to $1200 to see how much money you would have.

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The result may have surprised you. Now try changing the initial investment, interest rates, or annual investment amounts to see how you can become a millionaire.

 

Project Connection

 

You are now prepared to finish the Section 1 Project: Capturing Your Interest! Begin Steps 5 and 6, and then submit the entire completed project to your teacher.

 

Lesson 4 Assignment