M$4$ Assignment: Financial Statement

Financial Report

Money is a central concept for everyone no matter what age you are. In this project, you will explore exponents using the compound interest formula to make conclusions on investments

In this project, you will:

Use exponents to calculate the amount of interest eamed pn an investment

Evaluate formulas with exponents.

$3$ Convert interest rates to decimals

Apply the order of operations

To complete this project you will:

Complete the Financial Report Worksheet to guide you in developing your budget Be sure to show all workt

Complete a $2$ page, double$-$spaced, APA$-$formatted report in the report, you need to present your findings and explain your conclusions on interest rates and compounding frequency Thoughts to include in the report includeIs a savings account a good way to earn interest? When looking at opening a savings account, what should you look for$-$ higher interest rate or more frequent compounding?

$3$ Be sure to cite your sources for the interest rates from the chosen financial institutiont

Financlal Report Worksheet

Directions: Complete the financial report worksheet to help you with your calculations to create the

A$.$PA$.$ report.

Go to your financial institution's website or a local financlal institution's website and find the interest rate and compounding frequency $($monthly$,$ quarterly, annually, and so on$)$ for a savings account. Record that here:

Use the compound interest formula: $A=P(1+\frac{r}{n}{)}^{nt}$ where $r$ is the interest rate as a decimal, $n$ is the number of times it is compounded in the time frame, $r$ is the amount of time, and $P$ is the starting value. Calculate your balance if you invest $$1\mathrm{.}000$ for $1$ year.

I

Using the compaund interest formula, calculate your balance if you invest $$1,000$ for $5$ years.

Now select a new compounding period $($monthly$,$ quarterly, annually, and so on$)$ and redo your calculations from number $2$&$3,$ using, the same interest rate.

Now select a new interest rate from another financial instituation that is different than your starting ore. Redo your calculations from numbers $2H3$ with the new rate but keeping the same compounding frequency that yosu used in $2$ E$.3.$

What did you learn about comparing the comporunding frequevey sthat interest is compounded?

Binancial Report Workheet

Directions: Complete the Gnumelal report workalsel to helo you with your talculuchom to Ereate the APA report.

Go tn your Enancial invtiturion's webaite or a local financial institution's webuite and find the interest rate and compounding frequency $($monchly$,$ quanterly, annualy, and so an$)$ for a savings account. Recond that here

Use the compound interest formula: $A-p(1+\frac{2}{4}{)}^{-7}$ where $r$ is the interest rate as a decimal, $n$ is the number of times it is compounded in the sime frams, $r$ is the emosit of times and $P$ is the starting value. Calculate pour halance if you iovest $$1,$ oon for $1$ year.

Using the compound interent formula, calodate youe halance if you invest $$1\mathrm{.}000$ for $5$ yean.

Now select a new compounding geriod $($monthly$,$ guarterly, arnually, and so on$)$ and redo your calculations from number $283,$ wing the same interest rate.

Now select a new interest rate from another finavolal institution that is different than riut startins one. Redo your caladations from numbers $2$ & $3$ with the new rate but kreping the strme tompormaline frequenry thet $,$ wow wod in $2\mathrm{.}5.1.$

What did you learn about camparine the compounding frequency that incerest in compounded?

What did you learn about comparing the interest rete?