Suppose you can afford $15,600 per year to invest into a savings annuity. Write this value down, as you'll be using it throughout this entire problem. We are going to explore various options and how these options will impact the interest you are making.

Payment Frequency Monthly

If you deposit your available money on a monthly basis, how much are you depositing per month? $ ________

If you are earning 5.3% annual interest, what is the total value of the annuity at the end of 30 years? $ _________

How much interest is earned at the end of 30 years? $ _________

Weekly

If you deposit your available money on a weekly basis, how much are you depositing per week (52 weeks per year)? $ _______

If you are earning 5.3% annual interest, what is the total value of the annuity at the end of 30 years? $ ________

How much interest is earned at the end of 30 years? $ _______

Rate

r = 5.3%

If you are making monthly deposits from your available funds, what is the total value in your annuity at the end of 30 years, given the rate is 5.3%? $ _______

How much interest did you earn? $ ______

r = 5.8%

If you are making monthly deposits from your available funds, what is the total value in your annuity at the end of 30 years, given the rate is 5.8%? $ _______

How much interest did you earn? $ ______

r = 6.3%

If you are making monthly deposits from your available funds, what is the total value in your annuity at the end of 30 years, given the rate is 6.3%? $ ______

How much interest did you earn? $ ______

Time 25 years If you make monthly deposits at an annual rate of 5.3%, what is the total value in the account after 25 years? $________

How much interest did you earn? $ ______

30 years If you make monthly deposits at an annual rate of 5.3%, what is the total value in the account after 30 years? $ _______

How much interest did you earn? $ _______

35 years If you make monthly deposits at an annual rate of 5.3%, what is the total value in the account after 35 years? $ ______

How much interest did you earn? $ ______

If you make monthly deposits at an annual rate of 5.3%, what is the total value in the account after 40 years? $ _____

How much interest did you earn? $ ______

Conclusion

Which factor had the greatest impact on the amount of interest that you earned? Select an answer...payment frequency, rate, or time?