Date registered: Aug 2002
Vehicle: 190E, 400E, SLK350
Location: Chesapeak Bay
Mentioned: 1 Post(s)
Quoted: 983 Post(s)
Ok here is the math. You have 5,000 now and would like to know how much more a month can you contribute to end up with 16,000 within 59 months, right?
Let's look at a few of scenarios:
McBear suggested a 4.6 CD for 60 months. If you go in this direction then you will only be able to invest the 5000 in this CD since your window will shrink from that point on. That said, let's assume you do and let's assume that the CD is amortized on a yearly basis then your return on the 5K will be $6,230.92 at the end of the term (60 months). Now you need to come up with the difference of $9,769.08. Let's assume you can contribute a regular monthly payment without any interest then your monthly contribution will be $162.82. This tells you if you invest more every month and find a good investment where you can put that monthly payment you can easily beat your objective,
Last edited by DP; 09-17-2007 at 10:33 AM.