Individual Project 2: The Retirement Calculator
Most of you are just starting out. Most of you are going to get great jobs. The purpose of the individual project 2, is two-fold. I want to see your skills in web programming and I want to open your eyes to the benefits of personal finance. There are lots of great online calculators that help people understand their retirement plans. This application is going to be a little different.
The individual project 2 will be a database driven application. The user will be required to login. They will be asked a series of questions that will give a pretty good picture of their current retirement status.
- How old are you?
- What are your current monthly expenses?
- What is the starting balance of all your retirement savings?
During this phase, the person puts their monthly balance and monthly contributions into the “system”. With this information, you should be able to calculate the rate of return for both the quarter and the year. You should also be able to tell them what their total contributions have been as well as their total interest earned.
During this phase, the person finds out when they will be able to retire. This information is based on the actual monthly contributions and interest rate of return. The calculation should be when the nest egg gets to 25 x the annual expenses.
Personal Finance Resources
Interesting Calculator – this calculator helps determine what the interest rate is. It does not have a place for contributions, so I removed them from the ending balance. I used .25 for the time as a quarterly.
You may want at least 5 pages:
- Monthly Contribution / Monthly Ending Balance
- New User Registration
For this individual project 2, you should have at least 3 tables (1 for users, 1 for contributions, and 1 for the ending account balances).
Users should only be able to add a 1 contribution a month – if they need to, they should be able to update the contribution. This is the same for ending monthly balances.
Here is an interesting calculator – if you know what the monthly contribution is with the interest rate you can determine the future value.
If you think about what you know, the balance, the average interest rate, the average contribution rate, and the required ending balance, you should be able to loop through to find when the balance will become greater than the required ending balance.