Question

Please help meee ;((((((((

Answer 1

You and some friends have started your own company. After the first few months, the profits are rolling in. It is time to start thinking about putting your money to work for you. You decide that investing $5,000 into some Certificates of Deposit (CDs) would be a beneficial move.

With a CD, you lend your money to a third party, and after a set time, your money is paid back with interest. Before you start investing the company's money this way, you need to pitch it to your friends.

For this project, you can develop a written report, a slideshow, a video, or any other platform as long as it fully addresses the criteria listed below.

Research the highest interest rate (APY—annual percent yield) for 2-year and 5-year CDs. Document the company's name, interest rate, and minimum investment. The minimum investment must be less than or equal to $5,000.
Create the functions that represent the 2-year and 5-year CDs with your $5,000 investment. Use these functions to determine the amount you will be paid when the CD matures (the length of time for the specific CD). Show your work.
An investor comes to your office. He says that if you give him the $5,000 he will add on an additional $50 each year to what he owes you. Create the function for this investor's plan.
Create a table showing the value of the two CD's and the investor's plan for 5 years.
Year 1 Year 2 Year 3 Year 4 Year 5
2-year CD
5-year CD
Investor
Explain to your friends how to prove that the investor's plan is a linear function and the CDs are exponential functions. Use complete sentences.
Find the average rate of change for the investor's plan and the 5-year CD between years 2 and 3, and between years 3 and 5. Explain what this shows in complete sentences.
One of your friends suggests another 5-year option that gives interest based on the function k(x) = 5000(1.02)x. Explain what the 1.02 represents in terms of the CD and if it is a better plan than the 5-year CD you found. Use complete sentences.
Make a final recommendation on what plan you and your friends should follow. Consider that you cannot collect your money from a CD until it has fully matured. Your recommendation should be at least three sentences long.

Answer 2

no idea any help appretiate

Answer 3

@agent0smith @PinkSapphire any ideas were 2 start

Answer 4

i dont want you to do it , just sum help :(

Answer 5

@jim_thompson5910

Answer 6

parodn?

Answer 7

pardon*

Answer 8

any 1 ;(

Answer 9

@mathmale

Answer 10

:/

Answer 11

i am lost, i am vain, i will never be the same...

Answer 12

any idea @mathmale

Answer 13

An awfully wordy problem, isn't it?

Basically, you're comparing compound interest to simple interest.

The formula we use to calculate compound interest is\[A=P(1+r)^n\] which assumes the following: P is the principal, r is the annual interest rate, and n is the number of years.
You may already know that this is an exponential function, and that it applies only when interest is compounded only once per year.

Simple interest in this case would mean that your principal, P, earns a flat $50 per year. That's a linear function.

These pointers do not solve the problem, of course, but ought to give you some foundation on which to base your own efforts. Questions?

Answer 14

is it wanting us to make it up.. like there very little info and yess ;(

Answer 15

This problem does require that you do actual research (on the Internet would be fine) and find out what interest rates banks are paying for 2- and 5-year Certificates of Deposit. You'll also need to find out whether they pay interest once per year or several times per year. Of course you can make up data if you wish or if you had to; personally I'd do some Internet research.

So: Why don't you list what you already know and what you think you still need to know to finish this project? Perhaps I could then help you further.

Answer 16

i know i have 2 create a function 2 year anf 5 year

Answer 17

thats about it :(

Answer 18

Creating the functions is really quite easy, after you've done it a few times.

Just supposing that the interest rate on the 5-year CD is 3.2%, and that interest is compounded semi-annually (twice per year). If you invest $5000, here is the amount you'll have after 5 years:\[A _{5-yr-CD}=$5000(1+\frac{ 0.032 }{ 2 })^{(2*5)}=$5000(1.016)^{10}\]

Answer 19

From this point onward, Nick, I'd be glad to answer questions and/or respond to any work you'd like to share with me as you work towards completion of this project.

Answer 20

wats the 2 on the bototm mean?

Answer 21

Once again: The function I just gave you IS an example of EXPONENTIAL growth.

The 2 on the bottom comes from the bank's paying interest twice per year.
If the bank only pays interest once per year, then that 2 becomes a 1 and that 10 becomes a 5.

Answer 22

nicks records
F(x)=5000(1.14)^2

Answer 23

would that be 1?

Answer 24

I will attempt to interpret what you've typed in:

A = 5000(1.14)^2 would not be a function; it'd be a single value. I see this as being a case of r=14% per year, compounded annually, for 2 years. No, that would not be 1.

Answer 25

soooo confused... i apologize

Answer 26

First of all, please decide whether you're going to do some Internet research to find out what banks in your area are paying in interest on 2-year and 5-year CDs, and how many times interest is compounded per year, OR if you're going to make up values.

Answer 27

http://www.bankaholic.com/sem/cd-rates/?product=15&x=8&y=6&ec_id=m8004501&ef_id=Up9PEAAABTqK3UZr:20131229193337:s

Answer 28

hey is this any good?

Answer 29

It's certainly good enough to give you examples of rates on 2- and 5-year CDs. There's no one right answer here; you must simply choose particular interest rate values. It doesn't really matter which ones you choose...just choose.

Answer 30

f(x) = 5000(1.2)^1
f(x) = 1000(2.3)^5

Answer 31

so is that ok?

Answer 32

for number 1, we dont need 2 create a function right?

Answer 33

do i do something like this for 1

Answer 34

the highest intrest role from apy for 2years is1.09% from cti bank with a minimum investment of 5000

Answer 35

You DO have to create 3 different functions.

Let's examine what you have here, starting with f(x) = 5000(1.2)^1.

First off, write this as a function of time. It's OK to let x represent the number of years.
Then you have to have x on both sides of your equation; if you don't, you don't have a function of time.

Thus, your f(x) = 5000(1.2)^1 should be f(x) = 5000 (1.2)^x.
From this I can tell that the bank pays 20% interest just once per year. Wow! I want to put all my money into that bank!!

Answer 36

Now you tell me about one example: for a minimum $5,000 deposit, the bank pays 1.09% interest, and you must leave your money in that account for a minimum of 2 years. Please "fix" f(x) = 5000 (1.2)^x so that it correctly reflects this situation.

Answer 37

f(x)5000(1.09)^2

Answer 38

Don't put that "2" into your formula, because even tho' the CD is a 2-yr
CD, you might choose to leave the money there longer.

f(x)5000(1.09)^2 needs several fixes: first, there has to be an ' = ' sign; second, that 1.09 within parentheses is far too large--you are saying that your interest rate is 9% per year.
Convert 1.09% to a decimal fraction and then add that decimal fraction to 1. What do you get?
Third, dump that 2.

Answer 39

0.09?

Answer 40

To convert 1.09% to a decimal fraction, divide 1.09% by 100%. What decimal fraction does this step give you?

Answer 41

0.0109?

Answer 42

Again, here's the formula you're using:\[A=f(x)=P(1+r)^x\] Here's an example of what that means: r is the interest rate as a decimal fraction. For example, if the interest rate is 6% per year, we convert that to 0.06 AND THEN ADD THAT TO THE 1.

Answer 43

ahh

Answer 44

Yes: 1.09% converts to decimal fraction 0.0109.

So, please try again. Write your f(x): f(x) = ????

Answer 45

F(x)=5000(1.00109)^x

Answer 46

got xetra 0 *

Answer 47

Very good, except that within parentheses you want 1.0109, not 1.00109.

Answer 48

So, the correct form is f(x) = ?

Answer 49

yh

Answer 50

yh ???

Answer 51

Unsure of what you mean by "yh." Pls explain.

Answer 52

yes

Answer 53

british thing , my bad

Answer 54

Oh, you're British? England? Scotland? Wales? NI?

f(x)=5000(1.0109)^x, where x = # of years the money is left in the CD.

Answer 55

haha england , moved to florida in august://

Answer 56

so say i dun
f(x)=5000(1.0109)x
and its 2 year ,how do i find total amountwhen the cd matures?

Answer 57

Simply substitute 5 (meaning 5 years) for x.

Answer 58

so 5000x 1.0109 = 5054.5

Answer 59

then muliply by 5?

Answer 60

What I asked you to do here was to calculate the value of the CD after 5 years. But this is a 2-yr CD, so substitute 2 for x. You will need both values anyway, so nothing has been lost here. Notice that the problem statement requires that you make up a table showing the amount of $ you'd have after Year 1, Year 2, .... , Year 5.

"then muliply by 5?" No. That 5 is an exponent, not a multiplicand.

Answer 61

f(5)= 5000(1.0109) = 5054.5 NO.
f(5)= 5000(1.0109)^5 = ??

Answer 62

f(x)=5000(1.0109)2 = 25547970.25

Answer 63

that cant ebe right :(

Answer 64

You're right in thinking that that can't be right. You have to do the exponentiation FIRST. Therefore, find (1.0109)^5 FIRST. Next, multiply that by $5000.

Answer 65

5.27850560511

Answer 66

?

Answer 67

that's scary: It looks like $5.28. What happened to your $5,000?

Find (1.0109)^5 and type the answer here:

Answer 68

im using google
i left my caluclator at school

Answer 69

In Google, type in 1.0109^5, exactly like that.

Answer 70

1.05570112102

Answer 71

thats what it gives me

Answer 72

MUCH better. Now multiply 1.0557 by 5000.

Answer 73

5.2785

Answer 74

Nick, what you have done was to multiply 1.0557 by 5. I was asking you to multiply 1.0557 by 5000. BIG difference.

Answer 75

i dont know , im soo tried loool

Answer 76

ill go fix
quick

Answer 77

5278.5

Answer 78

that's the amount you'd have in your 2-year CD after 5 years.

Answer 79

o_O

Answer 80

By when must you turn in this work?

Answer 81

2morow o_O

Answer 82

Next, you'll need to investigate current annual interest rates on 5-yr CDs and go through exactly the same calculations as we've been doing for 2-yr CDs. Find the Amounts you'd have after 1, 2, 3, 4, and 5 years.

Last, you'll need to calculate what you'd have if this guy paid you a flat $50 interest at the end of each year. At the end of year 1, you'd have $5,000 + $50, or $5,050.

That ends the math part.

Then you'll need to explain in your own words what's happening:

Answer 83

how do i find
maturity of
2 years
o_O

Answer 84

0.0109 ^" x 5000 = 0.594

Answer 85

that cqant be the 1st 1 matured after 2 years?

Answer 86

^2*

Answer 87

Explain to your friends how to prove that the investor's plan is a linear function and the CDs are exponential functions. Use complete sentences.

I overlooked the fact that there's one more set of calculations you need to do. That's to find the average rate of change of the amount of money you have over the period [2 years, 3 years] and the same, again, for the period [3 years, 5 years]. Know how to find average rate of change for a function whose values are given in a table (as yours will be)?

Answer 88

wow

Answer 89

my head just exploded

Answer 90

Sorry. My head hasn't exploded yet, but is definitely getting tired.
What time tomorrow is this assignment due?

Answer 91

can u show me quickly how to find the 2 year cd after matured
f(x) 5000(0..109)^2

Answer 92

and first thing,

Answer 93

Mind saying from which city or town in England you're from? I know England pretty well.

Answer 94

born in reading just south of london and lived iin sunderland ;)

Answer 95

can u show me quickly how to find the 2 year cd after matured
f(x) 5000(0..109)^2

Answer 96

can u show me quickly how to find the 2 year cd after matured
f(x) 5000(0..109)^2 would not be correct; instead, use f(2) = 5000(1.0109)^2. aGAIN, be careful not to overlook that equal sign! And notice that inside parentheses you should have ( 1 + 0.0109 ) = (1.0109).

Answer 97

i thought it was just 1.09