Definitions:
Starting amount - The starting balance
or current amount you have invested or saved.
Additional contributions - The amount
that you plan on adding to your savings or investment
each period. The investment period options include monthly,
quarterly and annually.
Years - The total number of years
you are planning to save or invest.
Rate of return - The annual rate of
return for this investment or savings account. Historically
the major stock indexes have averaged 11% to 12% per
year. If you plan on withdrawing your money within five
years, you may wish to choose a more conservative rate
of return.
Compounding - This is the frequency
that your investment's interest or income is added to
your account. The more frequently this occurs, the sooner
your accumulated interest income will generate additional
interest. For stock and mutual fund investments you
should choose 'Annual'. For savings accounts and CDs
all of the options are valid, although you will need
to check with your financial institution to find out
how often interest is being compounded on your particular
investment.
Loan Application
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