Question

I need math help

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 CDs 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

Have you done anything yet..?

Answer 3

Did you research the highest interest rate yet?

Answer 4

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

Answer 5

It says the highest rate for a 2 year CD is 1.27%, and 5 year CD is 2.30%

Answer 6

Hey I am very confused with this project

Answer 7

2 year CD

1.27%

Company: Nationwide

Minimum Investment: $500

5 year CD

2.30%

Company: Optimizer Plus

Minimum Investment $25,000

Answer 8

Oh wait it says:

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.

Answer 9

So you can't have the first one because the minimum investment is $500, not $5,000.

Answer 10

2 year CD

1.20%

Company: Optimizer Plus

Minimum Investment: $50,000

5 year CD

2.30%

Company: Optimizer Plus

Minimum Investment $25,000

Answer 11

Okay, I found a different one.

Answer 12

one sec

Answer 13

should I make a powerpoint like it said?

Answer 14

?

Answer 15

Um, probably.

Answer 16

I did this assignment before..I did it in a word document..so you can do that too.

Answer 17

ok I set everything up

Answer 18

i just need help now for work

Answer 19

what would be the first company?

Answer 20

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.

2-year CD:

\(f(x) = 50,000(1.2)x\)

5-year CD:

\(f(x) = 25,000(2.3)x\)

Answer 21

one sec

Answer 22

Shouldn't the first company be less then 5000 it says

Answer 23

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.

Function:

\(f(x) = 5,000 + 50x\)

Answer 24

Where does it say that? All I see is it says that the minimum deposits have to be 5,000 or more.

Answer 25

Oh wait..it says LESS THAN OR EQUAL TO, my bad!!

Answer 26

We have to start all over..xD sorry.

Answer 27

The minimum investment must be less than or equal to $5,000.

Answer 28

Okay.

2-year CD:

Rate: 1.26%

Company: Nationwide

Minimum Deposit: $500

5-year CD:

Rate: 2.23%

Company: Nationwide

Minimum Deposit $500

Answer 29

one sec

Answer 30

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.

Function:

\(f(x)=5,000+50x\)

Answer 31

One second trying to add everything

Answer 32

Ok I am on this part. 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.

Answer 33

I already gave you the functions.

Answer 34

Sorry those two functions I gave you are supposed to have an EXPONENT of x.

Answer 35

ok one sec

Answer 36

ok so what are they then? confused

Answer 37

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.

2-year CD:

\(f(x)=500(1.26)^x\)

Plug in 2 years:

\(f(x)=500(1.26)^2\)

\(f(x)=500(1.5876)\)

\(f(x)=793.8\)

5-year CD:

\(f(x)=500(2.23)^x\)

Plug in 5 years:

\(f(x)=500(2.23)^5\)

\(f(x)=500(55.15)\)

\(f(x)=500(55.15)\)

\(f(x) = 27,575\)

Answer 38

you sure?

Answer 39

Yep.

Answer 40

do i put all that work on page?

Answer 41

Okay, I already gave you the investors plan function..now I just need to fill out the table.

Answer 42

Yes, you have to show your work..right?

Answer 43

yep one second

Answer 44

ok I add both of those

Answer 45

?what about the investor

Answer 46

Create a table showing the value of the two CDs and the investor's plan for 5 years.

Just plug in 1, 2, 3, 4, and 5 in for x in all 3 of these equations. Then fill in the table.

\(\begin{array}{|l|c|r|c|l|}
\hline
&Year~1&Year~2&Year~3&Year~4&Year~5\\
\hline
2-year~CD&$630&$793.80&$1000.19&$1260.24&$1597.90\\
\hline
5-year~CD&$1115&$2486.45&$5544.78&$12364.88&$27573.65\\
\hline
Investor&$5000&$5050&$5100&$5150&$5200&
\hline
\end{array}\)

This is your table.

Answer 47

and for the question before that with the inverstor?

Answer 48

The investors function is \(f(x) = 5000 + 50x\). I already told you that..

Answer 49

sorry I am still waking up haha and one sec

Answer 50

Okay..lol.

Answer 51

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.

The investor's plan is linear because you keep adding the same value to what you have.(50).

The CDs are exponential functions because you have to put in a different exponential value everytime to get a new value.

Answer 52

ok one second trying to do graph

Answer 53

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.

Years 2 and 3 for the investor plan is: (2, 5050) and (3, 5100)

Plug them in the slope formula:

\(m = \dfrac{y_2-y_1}{x_2-x_1}\)

\(m = \dfrac{5100-5050}{3-2}\)

\(m = \dfrac{50}{1}\)

\(m = 50\)

Average rate of change between years 2 and 3 for the investor plan is 50.

Years 2 and 3 for the 5-year CD plan is: (2, 2486.45) and (3, 5544.78)

Plug them in the slope formula:

\(m = \dfrac{y_2-y_1}{x_2-x_1}\)

\(m = \dfrac{5544.78-2486.45}{3-2}\)

\(m = \dfrac{3058.33}{1}\)

\(m = 3058.33\)

So the average rate of change between years 2 and 3 for the 5-year CD plan is 3058.33.

Answer 54

Years 3 and 5 for the investor plan is (3, 5100) and (5, 5200)

Plug them in the slope formula:

\(m = \dfrac{y_2-y_1}{x_2-x_1}\)

\(m = \dfrac{5200-5100}{5-3}\)

\(m = \dfrac{100}{2}\)

\(m = 50\)

So the average rate of change between years 3 and 5 for the investor plan is 50.

Years 3 and 5 for the 5-year CD plan is (3, 5544.78) and (5, 27573.65)

Plug them in the slope formula:

\(m = \dfrac{y_2-y_1}{x_2-x_1}\)

\(m = \dfrac{27573.65-5544.78}{5-3}\)

\(m = \dfrac{22028.87}{2}\)

\(m = 11014.435\)

So the average rate of change between years 3 and 5 for the 5-year CD plan is 11014.435.

Answer 55

Oh and another reason for:

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.

The investor plan has a constant slope of 50, while the CD plans do not have constant slopes.

Answer 56

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.

The 1.02 represents the rate.

The rate in our 5-year CD plan is 2.23, which is much larger than 1.02. Therefore, our 5-year CD plan is better than this one.

Answer 57

I really apperciate the help

Answer 58

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.

I think the 5-year plan is, because it grows so much after 5 years. There is a downside though, because you have to wait the 5-years before you can collect ANY money. Still, I think it's worth the wait for 5 years, your money will grow so much.

Answer 59

That's all the questions..

Answer 60

Thank you so much green wish i could give more medals

Answer 61

Lol, it's fine.