The years of me Essay
The years of me
Calculate the amount of your compound interest investment after 10 years. Remember that you are starting with $7,500. $10,642.83
work: A=7500(1+3.5%/365)^365×10 = 7500(1+0.00009589)^365×10 = 7500(1.00009589)^3650 = 7500(1.419041609) = 10,642.83 2)Calculate the amount of your simple interest investment after 10 years. Remember to use the same rate and compounding as in #1. $2,625
Create a graph that shows the growth of your compound interest and simple interest investment investment over time. The graph did not work online Part IV: Analysis 1)What is the difference between the graph of a simple interest investment and the graph of a compound interest investment? The difference between the graph of a simple interest and a compound is that simple would go by one original principle (years) and take much longer, as a compound you add the pertentage to what you have on a daily , monthy, etc basis and shows the gains quicker on the graph.
2)What is the difference between a simple interest investment and a compound interest investment? The difference between a simple interest investedment and a compound is that simple is a yearly basis, while compound is semi-annual, quarterly, monthy, etc. 3)About how long will it take for you to save enough money to make your purchase based on the compound interest graph? It would take around 10 years for me to save enough money to make my purchase with a comound interest graph. 4)About how long will it take for you to save enough money to make your purchase based on the simple interest graph? It would take 10 years to save enough money to make my purchase.
5)Which investment (simple or compound) is more beneficial and why? Compound interest is more beneficial because it allows you to add your accumulated interest back to your total every day. 6)In your research, did you find any accounts that offered simple interest? No I didnt find any accounts that offered simple interest 6a)If so, provide a description of where you found them. N/a 6b)If not, why do you think were unable to find them? I was unable to find them because the bank accounts would not offer a interest like that yearly 7)What is one way you could adjust your investment to make your purchase sooner? The way I could make my purchase come sooner is to make my interest rate higher.
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