Compound Interest Algebra 2 Semester 2 Extra Credit Goal: The goal is to use compound interest formulas to investigate and compare savings situations...
Hi, I have this assignment and its gonna due on Friday.
Please help me ASAP!
Thank you.
Compound InterestAlgebra 2 Semester 2Extra CreditGoal: The goal is to use compound interest formulas to investigate and compare savingssituations while using your writing skills to clearly communicate the solution.Role: You are the financial consultant for a young couple who are in need of financial advice.abufaniSituation: Everyone is looking to ear the most they can on their savings. You have been hiredas a financial consultant to help people determine the best options for their savings plans.Utilizing your compound interest skills, you need to convince the young couple of the bestoption for their savings.Scenario: Mollie and Kyle wish to invest in a no-risk savings account. They currently have$25,000 in an account bearing 5 1/4 % annual interest, compounded continuously. Thefollowing options are available to them:Keep the money in the account they currently haveInvest the money in an account bearing 5 /8 % annual interest, compoundedannuallyiii.Invest the money in an account bearing 5 1/2 % annual interest, compoundedquarterlya) Determine the equation for the value for the investment as a function of time for 6years for each of the three options. (Calculations)b) The couple is hoping to have $35,000 saved for a down payment on a house within 6years. Write a brief summary to the couple that describes the implications of theseoptions. (Letter)c) The effective interest rate of a savings plan is the rate of return of an account when younormalize the compounding period (putting each compounding interval: monthly, daily,annually, etc. on equal footing). Find the effective interest rate for the three optionslisted above using the formulas:
Show more
