Around The World
by
Yuridia Garza
and
Jess Bloomingdale
A young man wants to go around the world. In order to do this he will need at least
$100,000. If he saves $1,000.00 at the age of 18, and will receive an annual percentage
rate of 7%, how old would he be when his money matures to $100,000 dollars, if he
deposits $500 dollars every year?
18 1000.00 1070.00
19 1570.00 1679.90
20 2179.90 2332.49
21 2832.49 3030.76
22 3530.77 3777.92
23 4277.92 4577.35
24 5077.37 5432.79
25 5932.79 6348.08
26 6848.08 7327.45
27 7827.45 8375.37
28 8875.37 9496.65
29 9996.65 10696.41
30 11196.41 11980.16
31 12480.16 13353.77
32 13853.77 14823.54
33 15323.54 16396.19
34 16896.19 18078.92
35 18578.92 19879.44
36 20379.44 21806.00
37 22306.00 23867.43
38 24367.43 26073.15
39 26573.15 28433.27
40 28933.27 30958.60
41 31458.60 33660.70
42 34160.70 36551.95
43 37051.95 39645.58
44 40145.58 42955.77
45 43455.77 46497.68
46 46997.68 50287.52
47 50787.52 54342.64
48 54842.64 58681.63
49 59181.63 63324.34
50 63824.34 68292.05
51 68792.05 73607.49
52 74107.49 79295.02
53 79795.02 85380.67
54 85880.67 91892.31
55 92392.31 98859.78
56 99359.78 106314.96
To begin to solve this problem, we used a spreadsheet to simplify the calculating
process.
We got lucky and got it perfect on the first try.
To get at the answer 56 years, we used the first column of the spreadsheet to show
the ages of the man. The second column was used for adding the $500 dollars to the
new amount. The third column was used for calculating the interest of the second
column, and the last answer in this column was the final amount that he would have at that
age.
This same process can be used for many things. Things such as population growth,
our resource loss, etc.
As you can see from this info, it is a good idea to start saving at a young age.