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Introduction
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This page models a repetitive savings plan.
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In the yellow boxes pick your initial savings amount, your monthly deposit, and your interest rate.
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The other numbers will adjust automatically.
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You can use the menu options FILE and then MAKE A COPY to create your own version of this spreadsheet if you wish.
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Initial Savings:$500
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Monthly Deposit:$40
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Annual Interest Rate:0.03
Monthly Interest Rate:
0.0025
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months from nowstarting balancedeposit (at beginning of each month)interest due oninterest earnedending balance
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1$500.00$40.00$540.00$1.35$541.35
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2$541.35$40.00$581.35$1.45$582.80
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3$582.80$40.00$622.80$1.56$624.36
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4$624.36$40.00$664.36$1.66$666.02
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5$666.02$40.00$706.02$1.77$707.79
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6$707.79$40.00$747.79$1.87$749.66
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7$749.66$40.00$789.66$1.97$791.63
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8$791.63$40.00$831.63$2.08$833.71
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9$833.71$40.00$873.71$2.18$875.89
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10$875.89$40.00$915.89$2.29$918.18
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11$918.18$40.00$958.18$2.40$960.58
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12$960.58$40.00$1,000.58$2.50$1,003.08Total Saved
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Total Deposited:$980.00$23.08Total Interest
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Application Questions
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1. Think about one expense your household could reduce. Estimate a monthly dollar amount you could save instead.
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2. Think about your goals for saving? Will the money be used for a car, house, education, retirement, or something else?
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3. Would you save with a bank account? Think about the research done during the Week 2 Discussion Forum.
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What interest rate might a bank account earn?
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4. Would you save with an IRA account or an Oregon 529 Plan?
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Think about the discussion in class about investment options. What interest rate might an IRA account earn?
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