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Future Site is an open area waiting for a ride to be built in ten years time. As fairground management you cannot build until your
- "Future Site" is an open area waiting for a ride to be built in ten years time. As fairground management you cannot build until your investments have grown enough to finance the project. How should you invest?
Scenario A | Invest $10 000 per month for four years and let the amount grow for the final six years at 5%/a monthly throughout. |
Scenario B | Wait the first five years and invest $10 000 per month for the remaining five years at 5%/a monthly throughout. |
Table for Scenario A | Table for Scenario B | |||||||||||||||||||||||||||||||||||||||||||||||||
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* indicates compounded interest growth with now new money invested |
A. | Graph Scenario A and Scenario B on the same set of axes. | ||||||||
B. | Create an equation for the data in Scenario B using function notation to express your answer. Use the form FV(n) = ?, where "FV" is the future value after "n" months of investing. | ||||||||
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