How much money do I need to save per month to have $50,000 in 44 years time, earning 4.3% interest?
In 44 years time, I want to have $50,000 sitting in my bank account. If I put in the lump sum today of 250 dollars, and earn 4.3% interest per year, how much money do I need to put into this account per month?
Public Comments
- $31.54/month
- $30.77 each month if 4.3% interest is compounded monthly. your principal is $250, with 44 years to grow and at an interest rate at 4.3% compounded 12 times annually, you'll have $50,000.09 after time. that's the time value of your money. earning 4.3% isnt a great idea. send your money to fidelity or vanguard and put your funds into a no-load mutual funds as they have an average annual return of 11% over the past 10 years. you would have $446,612.33 instead of your $50,000 after 44 years if you invest in a mutual fund, and the risk is very low! you can also purchase bonds or t-bills that you buy for HALF the price. a $50 treasury bill will cost you only $25. you can invest in blue-chip stocks, income stocks, or growth stocks and watch your portfolio grow. bluechip stocks are large corportation that are large cap and are steady investments that are low risk and have good returns. income stocks are stocks that pay higher than average dividends growth stocks are stocks that mainly grow in value, and ussually do not pay dividends. do your research before you do anything. you have MANY options.
- I agree with Krazie. Unless this is a math question for school, I would put that money to work in a more aggressive fund as he mentioned. Run the same numbers at 8-10% and the difference will be startling.
- well, you'll be paying taxes on the interest each year,and no investment is going to pay you a guaranteed 4.3% without changing for 44 yrs. rates were as low as 1% or less just a few years ago and have dropped 1.7% in the last year or so - also - in 44 yrs, 50,000 probably won't even buy you an economy car, never mind a house or even one years worth of living expenses - figure $100-125/month
