Create: Write a brief profile of your client including his or her age, income, tax bracket, and financial goals. Then compare the amount of winnings accrued for each of the following payment options. Finally, make a recommendation about the best payment option for your client. One $550,000 $60,000/year $35,000/year $30,000/year Payment for for for 10 years. 20 years 25 years Rubric: 14 J6 /6 1. A listing of tax rates for each payment option is provided. 4 points: Tax rates are included 2. State whether each situation below describes an arithmetic or geometric sequence. -$60,000/year for 10 years (taxed atx%) invested in the account -$35,000/year for 20 years (taxed at y%) invested in the account -$30,000/year for 25 years (taxed at z%) invested in the account 2 points: Type of sequence is correct for each and explanation is included. J3 13 13 3. The common difference or common ratio for each sequence is provided and explained 1 point for common difference or ratio is correct and explained. 4. a recursive formula for each situation is written and explained. 1 point: Formula is correct and explained. 5 An explicit formula for each situation is written and explained. 1 point: Formula is correct and explained. 6. The calculations for each of the following are provided. Use sigma notation and the assumptions given on the project page. Total amount of a lump sum payment 13 /8 . Sums of each of the situations listed in step 2. /15 2 points: Notation and sum are correct for each. 7. Includes a comparison of the total amount accrued in each type of payment at the end of each of the following intervals: year 1, year 5, and year 10. 5 points: Calculations are correct for each. 8. A written recommendation to the client on each option to choose with explanation is included. 8 points: Recommendation and explanation included. Total Points 18 /50 Create: Write a brief profile of your client including his or her age, income, tax bracket, and financial goals. Then compare the amount of winnings accrued for each of the following payment options. Finally, make a recommendation about the best payment option for your client. One $550,000 $60,000/year $35,000/year $30,000/year Payment for for for 10 years. 20 years 25 years Rubric: 14 J6 /6 1. A listing of tax rates for each payment option is provided. 4 points: Tax rates are included 2. State whether each situation below describes an arithmetic or geometric sequence. -$60,000/year for 10 years (taxed atx%) invested in the account -$35,000/year for 20 years (taxed at y%) invested in the account -$30,000/year for 25 years (taxed at z%) invested in the account 2 points: Type of sequence is correct for each and explanation is included. J3 13 13 3. The common difference or common ratio for each sequence is provided and explained 1 point for common difference or ratio is correct and explained. 4. a recursive formula for each situation is written and explained. 1 point: Formula is correct and explained. 5 An explicit formula for each situation is written and explained. 1 point: Formula is correct and explained. 6. The calculations for each of the following are provided. Use sigma notation and the assumptions given on the project page. Total amount of a lump sum payment 13 /8 . Sums of each of the situations listed in step 2. /15 2 points: Notation and sum are correct for each. 7. Includes a comparison of the total amount accrued in each type of payment at the end of each of the following intervals: year 1, year 5, and year 10. 5 points: Calculations are correct for each. 8. A written recommendation to the client on each option to choose with explanation is included. 8 points: Recommendation and explanation included. Total Points 18 /50
