1)What will you buy? (Provide a detailed description of the major purchase)
A used 2010 Toyota Tacoma truck
2)Why do you want to make this purchase?
Because I always wanted to buy my own car
3)What is the purchase price? (Choose an amount between $10,000 and $15,000.)
Part 2: Reserach
1)Name of Bank
2)Name/Type of Account
5)Source (e.g., website, teller's name, etc.) https://www.navyfederal.org/?utm_source=Google&utm_medium=PPC&utm_term=navy%20federal|e&utm_campaign=Brand-Mobile Part 3: Calculations & Graph
1)Calculate the amount of your compound interest investment after 10 years. Remember that you are starting with $7,500.
work: A=7500(1+3.5%/365)^365x10 = 7500(1+0.00009589)^365x10 = 7500(1.00009589)^3650 = 7500(1.419041609) = 10,642.83
2)Calculate the amount of your simple interest investment after 10 years. Remember to use the same rate and compounding as in #1.
work: 7500x.035x10 = 7500x.35=2625
3)Create a graph that shows the growth of your compound interest and simple interest investment investment over time.
The graph did not work online Part IV: Analysis
1)What is the difference between the graph of a simple interest investment and the graph of a compound interest investment?
The difference between the graph of a simple interest and a compound is that simple would go by one original principle (years) and take much longer, as a compound you add the pertentage to what you have on a daily , monthy, etc basis and shows the gains quicker on the graph.
2)What is the difference between a simple interest investment and a compound interest investment?
The difference between a simple interest investedment