Spreadsheets are great tool to show you how investing in the stock market has risk and rewards compared to placing your money in a savings account earning constant interest rate. It is your decision where to put your money.
In 2004 you were were given a gift of $1000. At the time you had 2 options on what to do with the money. Place in a secure Certifcate of Deposit or Invest in a mutual fund that mirrors the S & P 500 Stock Index.
What would be the best Investment option?
CP Federal Certificate of Deposit
S & P 500 Stock Index
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Start by layout the following table on your Daily Notes
Locate the APY for the CD at CP Federal and enter
Use the future value function to calculate what the $1000 will be worth in 5 years
Now the S & P is a bit more complex.
The rate changes each year.
You will have to do 5 calculations.
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