BMATWT 353 - Business of Building

 

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Assignment 10 - Personal Savings and Investing

Due Thurs April 17

This assignment may be done Individually, or in groups of up to 2 people.

Create an Excel Spreadsheet that will calculate the total value of savings and compounded earnings for an individual investor making regular annual savings deposits over the ages 25 to 65.

Show a cell with the assumed annual interest rate that the investments will earn.

At a minimum, provide Columns to show

  • the age/year (ages 25 - 65),
  • savings for that year
  • interest for that year
  • Cumulative value of savings plus compounded earnings from investment.

Use formulae so that you can easily change the investment interest rate, or annual savings amount.

Include, at the bottom of your spreadsheet, answers to the following questions.

1) Assume annual investments of $2,000 per year and an investment earning at an interest rate of 9%. What is the account value at age 65?

(Answer: $805K)

2) What is the account value with annual savings of $3,000 and the same 9%?

3) Account value with savings of $1,000 and 6%?

4) Account value with savings of $4,000 and 12%?

 

Hand in-class a copy of the spreadsheet printout with answers to the four questions.

 

 

 

    
         

Produced and maintained by David T. Damery
Building Materials and Wood Technology
Department of Natural Resources Conservation
College of Natural Resources and the Environment
University of Massachusetts, Amherst.

    
Many of the materials created for this course are the intellectual property of the instructor. This includes, but is not limited to, the syllabus, lectures and course notes. Except to the extent not protected by copyright law, any use, distribution or sale of such materials requires the permission of the instructor. Please be aware that it is a violation of university policy to reproduce, for distribution or sale, class lectures or class notes, unless the faculty member has explicitly waived copyright. Copyright 2008, David T. Damery