Question

Help :)

Answer 1

@Tallan

Answer 2

Go on the Internet and find interest rates for 2 and 5 year CDs
Get the company's name and the minimal investment.

Without that current information, we cannot start the problem.

Answer 3

ah ok wait :P

Answer 4

u know whats hilarious XD i thought this meant a CD u play lol @Directrix - Barclays
APY - 1.15%
Rate- 1.14%
Compounded daily
$0

5yr-
APY- 2.25%
RATE- 2.23%
Compounded daily
$0

both as of February 17th,2015

Answer 5

Here is one site that may help: http://www.bankrate.com/cd.aspx

Answer 6

Certificate of Deposit. The interest rates are so slow in the current economy.

Answer 7

Did you look at the minimum investment amount on those Barclay figures?

Answer 8

Ahhhhh :P makes sense xD and i looked and it said $0 . Is that good that the interest rates are low. My parents do stock exchange but rarely do I think on this lol

Answer 9

CDs are a sure thing. Stocks vary but there is more money to be made from stocks.

Answer 10

Nice :) so i looked on that website which should we use?

Answer 11

Synchrony Bank, I think is higher. Cit Bank requires $25K minimum.

Answer 12

So we should use that?

Answer 13

Why don't we just go with yours. These rates fluctuate. CDs may be no risk but they pay a terrible return on the money.

Answer 14

We, or I might not be able to get through this whole thing tonight. Let's see.

What is the next part?

Answer 15

Ok :) and if u can't tonight maybe tomorrow :)
the next part is -
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 16

We'll need the compounded daily formula. Let's look.

Answer 17

compound daily is .80%

Answer 18

wait sorry 1.14% for 2 yr and 2.23% is 5 yr

Answer 19

Oh, I meant the formula.

Answer 20

There is an online calulator for computing this stuff but we'll crank it out and then check.

Answer 21

check ur pm's :) thanks for the help so far heres a medal

Answer 22

u can continue here if u would like and i will check in the morning :)

Answer 23

I just saw the message. It is late here, too. So, we'll pick up tomorrow. I'll mark this location. See you later today.

Answer 24

Two Year CD
A = P ( 1 + r/n ) ^ nt, Compound Daily Formula

Two Year Function
-----------------
rate of 1.14% = .0114

A(t) = 5000 (1 + .0114/365) ^ (365*2)
----------------------

A = 5000 * ( 1 + (.0114/365))^ (365*2)

A = $ 5 115.31 in two years. Gain: $115.31

Answer 25

Two Year CD
A = P ( 1 + r/n ) ^ nt, Compound Daily Formula

Five Year Function
-----------------
rate of 2.23% = .0223

A(t) = 5000 (1 + .0223/365) ^ (365*t)
-------------------------------

A(5) = 5000 (1 + .0223/365) ^ (365*5)

A(5) = $ 5 589.75 Gain: $ 589.75 over 5 years

Answer 26

Check against online calc at

http://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php

Answer 27

Check against same calc for 5 years

Answer 28

on what

Answer 29

Ok So What u did last night that big problem that is B correct it makes sense in how u did it :)

Answer 30

and the second one do u mean 5 yr ?

Answer 31

>>and the second one do u mean 5 yr ?

Yes. It has a 5-year label below that.

Answer 32

The interest is compounded daily so I used the formula for that, filled in the variables, and let the "Wolf" number crunch. I checked the Wolf's work using an online interest calculator, too. So, that's that.

You are about to do some calculating with the "Wolf" to fill in that table on part C.

A = P ( 1 + r/n ) ^ nt, Compound Daily Formula

Answer 33

We have to do #3 first.

Answer 34

sorry xD Stupid connection Had to go help my mom @Directrix

Answer 35

and whats the wolf xD

Answer 36

What is question #3? There's another function to write. @Sparklestaraa

Answer 37

Hey wait Ya the second problem I was just review it

Answer 38

#3- 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.

Answer 39

The investor is taking the $5000 and paying $50 per year.

P(t) = 5000 + 5*t where t is the number of years.

Answer 40

Look at the 2-year CD row on the chart.

Answer 41

Crank these out for t = 1, 2, 3, 4, 5

A(t) = 5000 (1 + .0114/365) ^ (365*t)

Answer 42

Kk Let me try

Answer 43

You do:

5000 (1 + .0114/365) ^ (365*1) =

5000 (1 + .0114/365) ^ (365*2) =

5000 (1 + .0114/365) ^ (365*3) =

5000 (1 + .0114/365) ^ (365*4)=

5000 (1 + .0114/365) ^ (365*5) =

Answer 44

So those i do thats on 4 right

Answer 45

Go to wolframalpha.com and enter each of the calculations.
You can copy and paste them from above your last post in this thread.

Answer 46

You are completing question 4, row 1.

Answer 47

kk :)

Answer 48

So thats the wolf got it xD

Answer 49

5000 (1 + .0114/365) ^ (365*1) =5057.325

5000 (1 + .0114/365) ^ (365*2) = 5115.3077

5000 (1 + .0114/365) ^ (365*3) =5173.954

5000 (1 + .0114/365) ^ (365*4)=5233.2745

5000 (1 + .0114/365) ^ (365*5) =5293.274

Answer 50

I am not rounding up the cents. I don't know what these banks do. But, let's be consistent in this problem. Round them all down or round them all up. I vote for down.

Answer 51

kk down will do

Answer 52

when i round down for example yr 5. 5000 (1 + .0114/365) ^ (365*5) =5293.274 would become 5293.2 correct

Answer 53

Okay on those.

5057.32, 5115.30 and so on with rounding down.

Answer 54

Yr. 1-
5000 (1 + .0114/365) ^ (365*1) =5057.32

Yr. 2-
5000 (1 + .0114/365) ^ (365*2) = 5115.30

Yr.3-
5000 (1 + .0114/365) ^ (365*3) =5173.9


Yr. 4-
5000 (1 + .0114/365) ^ (365*4)=5233.2

Yr. 5-
5000 (1 + .0114/365) ^ (365*5) =5293.2

Answer 55

>>5293.274 would become 5293.2 correct

This is a dollars and cents problem so go to 5293.27 Cents are hundredths.

Answer 56

Now, to row 2 of the chart.

Answer 57

The 5-year CD rate year by year.

A(t) = 5000 (1 + .0223/365) ^ (365*t)

Answer 58

For t = 1, 2, 3, 4, 5

Starting with 5000 (1 + .0223/365) ^ (365*1)

Then, stay on the Wolf and change the 1 year to a 2 and crank that and so on.

Answer 59

so it goes from 2+ .0223/365) correct?

Answer 60

No.

Answer 61

It goes from 5000 (1 + .0223/365) ^ (365*1) to

5000 (1 + .0223/365) ^ (365*2)

Answer 62

And, then to 5000 (1 + .0223/365) ^ (365*3)

Answer 63

Wait the connection sorry let me read

Answer 64

5yr Table Values-

Yr.1-
5000 (1 + .0223/365) ^ (365*1)= 5112.74


Yr.2-
5000 (1 + .0223/365) ^ (365*2)= 5228.04

Yr.3-
5000 (1 + .0223/365) ^ (365*3)= 5345.93

Yr.4-
5000 (1 + .0223/365) ^ (365*4)=5466.48

Yr.5-
5000 (1 + .0223/365) ^ (365*5)=5589.74

Answer 65

@Directrix

Answer 66

The investor is taking the $5000 and paying $50 per year.
P(t) = 5000 + 5*t where t is the number of years.

Answer 67

So, for the third row,

5000 + 50*t for t = 1, 2 3, 4, 5

Answer 68

So what is the full equation to plug in

Answer 69

5000 + 50*1
5000 + 50*2 and so on up to t = 5

Answer 70

Yr.1-
5000 + 50*1= 5050

Yr.2-
5000 + 50*2=5100

Yr.3-
5000 + 50*3=5150


Yr.4-
5000 + 50*4=5200

Yr.5-
5000 + 50*5=5250 @Directrix

Answer 71

What is next?

Answer 72

to- 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

Answer 73

Number crunching time again.

Answer 74

Omg thats like genius :P Thanks and I'm ready for number crunching :D

Answer 75

ok :P