Category: Headline News

The Latest Headline News from around the World.

Weaker loonie may not deter Bank of Canada diverging from the Fed | Reuters

The Bank of Canada would be willing to cut interest rates three times ahead of the Federal Reserve’s first move before a declining currency threatens to endanger the inflation outlook, the median estimate of seven analysts in a straw poll showed.
— Read on www.reuters.com/business/finance/weaker-loonie-may-not-deter-bank-canada-diverging-fed-2024-05-17/

Question: How much money would you have in 40 years at an interest rate of 6 percent and contribute $120 a week to your account?

Starting at age 25, and ending at age 65: If you contribute $120 per week to an account earning 6% annual interest, compounded annually, for 40 years, you would have $1,032,891.92 at the end of that period. Here are the details:

Initial Investment: $0
Weekly Contribution: $120
Annual Interest Rate: 6%
Number of Years: 40

Compounding Frequency: Annually With these inputs, the total contributions over 40 years would be $249,600 (40 years x 52 weeks x $120). The interest earned on those contributions at 6% per year would be $783,291.92. Therefore, the total future value of the account after 40 years would be $1,032,891.92, which is the sum of the total contributions ($249,600) and the total interest earned ($783,291.92). The power of compound interest over such a long period, combined with consistent weekly contributions, allows the money to grow significantly.

Contributing regularly and letting the interest compound are key factors in building substantial savings over time.