### What happens if you delay start of savings for five years

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##### Reference no: EM131380333

Assignment

Your calculations were all correct except that the car loan in parts 1 & 2 should have been for six years instead of five.

Part 2 A (must be completed in Excel)

Analysis: Using the budget in part 1; Use as many time lines as you need forecast all your projected savings(investments) to get each investments future value. You will have to determine your PV, I/y, N, PMT then calc FV

If you don't have any idea on the I/y you could use 5 or 6% to be conservative. N depends on your current age and when you think you will retire.

Savings

401k or (403B) whichever you use

IRA's....

Home Ect.......

Once you add up all the future values from step 2 above, and do a time line to determine how much you will be able to spend each year assuming you are going to spend all your money. I.e. your future value will be 0. To calculate N, you have to make a lot of assumptions. For example, if you are planning on retiring at age 65 and think (hope) you will life until you are 90 (25 years) your N will be 25.

Part 2 B (must be completed in Excel)

Scenario Analysis:

Run at least 3 different scenarios to see the impact of decisions. Some examples may include:

What happens if you delay start of Savings for 5 years?

What happens if you work 3 more years?

What if the interest rate is higher/lower?

What if you have more to save after student loans are paid off?

Part 3 (must be turned in Word Via TurnItin)

Reflection

Once you are completed with the three sections above write a page or two on what you learned from this project. This is open ended but I expect at a minimum of 1 page as a write up. Reflection could include but is not limited to the following questions:

What did you learn?
Was there anything unexpected?
What changes will you be making as a result?
How do you plan on investing their funds - why? How often will you review the Plan?
What benefits are there to budgeting?
What specific changes will you make as a result of this assignment?

Please note: APA formatting required for all outside sources.

Attachment:- Amoritization_Table_Lequisha_Seldon.xls

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