You are going to build a mathematical model for savings. Be sure to state all your assumptions
- Build a mathematical model to determine the monthly deposit you will need to make in a fixed interest account in order to attain a set financial goal in 20 years.
- Apply this model to a situation in which you make an initial deposit of $100 and you wish to attain a balance of $100,000 in 20 years. Make a table of the monthly deposits for fixed interest rates going from 0.5% to 20% in increments of 0.5%.
- Modify some aspect of your model, e.g., change an assumption, redo your analysis, and compare your results. Comment on the comparison.