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In Student Activity Sheet 3, you analyzed the future value of an investment over time. You began with $2,600 invested in a savings account
In Student Activity Sheet 3, you analyzed the future value of an investment over time. You began with $2,600 invested in a savings account for 30 years. After 30 years, your initial investment would be worth $9.062.70. In this activity, you will look at the same investment in a different way. The question relates to the time value of money (TVM). What is that $9,062.70 future value worth at various times in the 30-year investment? The following table lists the principal required to obtain the same future value of $9,062.70 for various investment lengths. So, in the table, the 30-year investment is the one you have already explored. The other values in the table show how much principal you would need to invest and the length of time of the investment for the same yield. This can be thought of as the present value of the investment. Years Till Principal Maturity Required 0 $9,062.70 5 $7,359.95 10 $5,977.16 15 $4,854.16 20 $3,942.20 25 $3,201.50 30 $2,600.00 1. Create a scatterplot of the given data. Label the axes and scales, and provide a title. 2. Calculate the regression equation for the given data. Graph the regression equation on the scatterplot. Explain why the function model you used makes sense in the problem situation.
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