Part 1 Investing for the Future

To help her get started, Andreas mother gives her $2100 as a graduation gift. Around the same time, she inherited $4000 from her grandfather. Finally, she receives a signing bonus of 10% of her base salary from her new job. Rather than spend the money Andrea decides to invest it to help save for a down payment for a house. National Savings Bank currently has a 7-year CD with an APR of 3%, compounded weekly. Federal Savings Bank has a 7-year CD APR of 3.5%, compounded semiannually. Both investments are guaranteed.

1. Determine the future value of each investment option