Part 1:
You have just come into a large sum of money! You make the wise decision to invest the money to use at a later date. Use the exponential equation to find the total amount in the investment account after a certain number of years.
For your problem:
- Choose an amount between $5,000 and $500,000 for p , the initial amount of money to invest.
- Choose a rate between 2% and 11% for r , the interest rate per year.
- Choose daily, monthly, or yearly for n , the number of times per year the interest will be compounded
- Choose between 5 and 30 years for t , the number of years you will let the account grow.
Part 2
Find a classmate's post that you considered informative. Perform the same calculation as your classmate but raise or lower the interest rate by at least 1%. Were you surprised at the difference in the amounts of money in the accounts at the end of the time period? Why or why not? Share your thoughts on the investment with your classmates. Below is the classmate solution
Here are the values I have chosen:
p=$10,000
r=10%
n=12 months(one year)
t=20 years
This money would be spent on a new home once I retire and settle outside of the Military!