Janetta wishes to buy a commercial building to expand her business and needs to

Question

Janetta wishes to buy a commercial building to expand her business and needs to save for the down-payment. If she can save $4,000 a month, estimate how long it will take to save $2,000,000 if she does not earn interest on her savings. Assume (unrealistically) that the price of the building won’t change while she saves.

-It will take__ years

-Explain how you came up with your estimate.

*Calculate how long it will take.

-It will take__ years and __months

Do you think this is a reasonable amount of time? Explain.

Estimate how much she would need to save each month to realize her goal in 15 years.
$__per month

Explain how you came up with your estimate.

Now calculate how much she would need to save each month to realize her goal in 15 years. Round to the nearest cent.
$__per month

Explanation / Answer

Here she save $ 4000 per month

To save $ 2,000,000

It will take 20000000/4000 = 5000 months or 416 years and 8 months

No, it is pretty unreasonable amout of time.

To complete her goal in 15 years that means there are 15 * 12 = 180 months

so , she must save each month = 2,000,000/180 = $ 11111.11 per month

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