A grandmother is looking for a plan to finance her new grandchildâscollege education. She has $25,000 to invest. Search the internetand locate a long-range investment plan, CD, Savings Bond, etc, forthe grandmother. The plan is to earn compound interest.
Calculate the future value of the investment. You must use theadvertised interest rate, the number of compounding periods peryear, and the time the funds will be invested. If you are not giventhe number of compounding periods a year, make it up.
â¢The principal is $25,000. This is p.
â¢Research the annual interest rate for your investment. This isr.
â¢State the time in years for the investment (as in when the newgrandchild will be attending college). This is t.
â¢State the number of compounding periods per year. This is n.
â¢Model the future value of Grandmaâs investment as an exponentialfunction, with time as the independent variable:
?F(t) = P(1 + r/n) nt
â¢State the future value of Grandmaâs investment
A grandmother is looking for a plan to finance her new grandchildâscollege education. She has $25,000 to invest. Search the internetand locate a long-range investment plan, CD, Savings Bond, etc, forthe grandmother. The plan is to earn compound interest.
Calculate the future value of the investment. You must use theadvertised interest rate, the number of compounding periods peryear, and the time the funds will be invested. If you are not giventhe number of compounding periods a year, make it up.
â¢The principal is $25,000. This is p.
â¢Research the annual interest rate for your investment. This isr.
â¢State the time in years for the investment (as in when the newgrandchild will be attending college). This is t.
â¢State the number of compounding periods per year. This is n.
â¢Model the future value of Grandmaâs investment as an exponentialfunction, with time as the independent variable:
?F(t) = P(1 + r/n) nt
â¢State the future value of Grandmaâs investment
