Project 9.1

Conduct a survey of banks, savings and loan companies, and credit unions in your area. Prepare a report on the different types of savings accounts available and the interest rates they pay. Include methods of payment as well as interest rates.

Project 9.2

Do you expect to live long enough to be a millionaire? Suppose that your annual salary today is $39,000. If inflation continues at 6%, how long will it be before $39,000 increases to an annual salary of a million dollars?

Project 9.3

Consult an almanac or some government source, and then write a report on the current inflation rate. Project some of these results to the year of your own expected retirement.

Project 9.4

Karen says that she has heard something about APR rates but doesn't really know what the term means. Wayne says he thinks it has something to do with the prime rate, but he isn't sure what. Write a short paper explaining APR to Karen and Wayne.

Project 9.5

Some savings and loan companies advertise that they pay interest continuously. Do some research to explain what this means.

Project 9.6

Select a car of your choice, find the list price, and calculate 5% and 10% price offers. Check out available money sources in your community, and prepare a report showing the different costs for the same car. Back up your figures with data.

Project 9.7

Outline a program for your own retirement. In the process of writing this paper answer the following questions. You will need to state your assumptions about interest and inflation rates.
a. What monthly amount of money today would provide you a comfortable living?
b. Using the answer to part a project that amount to your retirement, calculating the effects of inflation. Use your own age and assume that you will retire at age 65.
c. How much money would you need to have accumulated to provide the amount you found in part b if you decide to live on the interest only?
d. If you set up a sinking fund to provide the amount you found in part c, how much would you need to deposit each month?
e. Offer some alternatives to a sinking fund.
f. Draw some conclusions about your retirement.

There are a multitude of sites to help with retirement planning. Here are a couple of samples:
http://www.troweprice.com/common/index3/0,3011,lnp%253D10106%2526cg%253D920%2526pgid%253D7592,00.html?van=retirement
http://www.aoa.dhhs.gov/retirement/fpfr.html