The Compound Interest Project
Using what you have learned in Lesson 7, we are going to pick the best retirement account out of the options given. This is a random draw so you will have a unique situation to work through depending on your job.
The top of our paper gives vou a brief description of vour job. Use the information to complete the table and pick which account will help vou the most. At some point, it may seem clear which account is better but you need to complete the table to gain all your points. Use Desmos to help you.
Account 1: This account requires $3,000 to open and earns 8% annual interest compounded quarterly. You will add money to this account but you need to refer to the chart to see how much each year you can afford.
Account 2: This account requires $5,000 to open and earns 6% annual interest compounded monthly. You will still add money to this account but you need to refer to the chart to see how much each year you can afford.
After you complete the table, answer the following questions.
What is your name?
Period:
What is your job?
1) How much money is in your account at the end of the 47 years for Option 1?
2) How much money is in your account at the end of the 47 years for Option 2?
3) Which account gives you the best return on your money?
Job 2: An apprentice to a construction job to start. You are good at what you do and are considered an expert. After 30 years of working with your hands, you open your own business! There are always a few speed bumps in life but you always found a way to contribute something each and every year.
Age
Years working
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Break
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
Amount added each year (once a year you add the amount)
Account starter only
1
2080 - You are adding $1 per hour you work to your account
2 2080
3 2600 - A raise and now add $1.25 per hour you work to your account
42600
5 3120 - A raise and now add $1.50 per hour you work to your account
6 3120
74160 - A raise and now add $2.00 per hour you work to your account
8
4160
9
4160
10
4160
11
4160
12
4160
13
4160
14 4160
15
4160
16
4160
17
4160
18
4160
From year 18 to year 30 you work for a different industry and do not contribute at all.
30
2080 - You start a business so you dropped down to $1 per hour
31 2080
322080
33 2080
34 2080
35 2080
8320 - Your company is going strong and you work a lot plus you go
36 back to $2 per hour
37 8320
38 8320
39 8320
40 8320
41 18320 - Everyone gets bonus! You put yours in your account.
42 18320
43
18320
44 18320
45 18320
46 18320
47 18320 - You sell vour business and retire!
pls help me!!!!