The goal is to use compound interest formulas to investigate and compare savings situations and clearly...

 

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The goal is to use compound interest formulas to investigate and compare savings situations and clearly communicate the solution. Role: You are the financial consultant for a young couple who are in need of financial advice. Situation: A lot of people are looking to earn the most they can on their savings. You have been hired as a financial consultant to help people determine the best options for their savings plans. Utilizing your compound interest skills, you need to convince the young couple of the best option for their savings. Scenario: Kyle and Katie Smith wish to invest in a no-risk savings account. They currently have $25,000 in an account bearing 5 % % annual interest, compounded continuously. The following options are available to them: I. Keep the money in the account they currently have Invest the money in an account bearing 5 7/8% annual interest. I. compounded annually III. Invest the money in an account bearing 5 %% annual interest, compounded quarterly A Determine the equation for the value for the investment as a function of time for cach of the three options. n Granh all three functions on the same coordinate plane so each graph is distinguishable. Be sure to label all information, Include tables of expected amounts for 6 years. C. The couple is hoping to have $35,000 saved for a down payment on a house within 6 years. Write a brief summary stating their best option and make sure to'show all work, The goal is to use compound interest formulas to investigate and compare savings situations and clearly communicate the solution. Role: You are the financial consultant for a young couple who are in need of financial advice. Situation: A lot of people are looking to earn the most they can on their savings. You have been hired as a financial consultant to help people determine the best options for their savings plans. Utilizing your compound interest skills, you need to convince the young couple of the best option for their savings. Scenario: Kyle and Katie Smith wish to invest in a no-risk savings account. They currently have $25,000 in an account bearing 5 % % annual interest, compounded continuously. The following options are available to them: I. Keep the money in the account they currently have Invest the money in an account bearing 5 7/8% annual interest. I. compounded annually III. Invest the money in an account bearing 5 %% annual interest, compounded quarterly A Determine the equation for the value for the investment as a function of time for cach of the three options. n Granh all three functions on the same coordinate plane so each graph is distinguishable. Be sure to label all information, Include tables of expected amounts for 6 years. C. The couple is hoping to have $35,000 saved for a down payment on a house within 6 years. Write a brief summary stating their best option and make sure to'show all work,