this and future Instructor Graded Assignments you will be asked to use the
answers you found in the Unit 1 Assignment.
For these questions you need to cite a reliable source for information, which
means you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers. If you
do use those sites the instructor may award 0 points for your response.
Assignment problems must have the work shown at all times. The steps for
solving the problems must be explained. Failure to do so could result in your
submission being given a 0. If you have any
questions about how much work to show, please contact your instructor.
must be submitted as a Microsoft Word® document and uploaded to the Dropbox for
Unit 7. Please type all answers directly in this Assignment below the question
it applies to.
All Assignments are due by Tuesday at 11:59 PM ET of the assigned Unit.
All interest rates are to be assumed to be yearly
You wish to deposit $500 per month into an account for 36 months. Assume your
interest rate is equal to the prime interest rate.
a) How much do you have (total) in
the account after 36 months?
b) How much of that total is interest?
Two people, Ella and Jane, decide to start saving for retirement. Ella decides
to invest $4000 a year into an annuity at the age of 25. At the age of 35 she
stops making investments and just leaves the money there. Jane on the other
hand, decides to start investing $4000 a year at the age of 40 and invests that
money for every year thereafter. Assuming both retire at 70, and that the
interest rate both get on their investments is 10% (compounded annually) who
has the most money in their account at age 70? Explain why you pick the answer
At the age of 30 you decide to start saving money. At first you can only afford
to deposit $200 per month. However, at the age of 38 you are able to deposit
$300 per month. Then at the age of 45 you raise your monthly deposit again to
$500 per month. Finally at the age of 50 you get promoted to president of the
company and are able to deposit $2000 per month into the account. Assuming your
account is earning (prime interest rate + 4%) in interest, compounded monthly,
how much do you have in your account at the age of 70? Hint: Treat each time
that you change the deposit amount as a seperate annuity, and compute the
future value (FV) on each annuity seperately. Assume that each annuity earns
compound interest during the time it is not receiving deposits.
It is commonly assumed that the stock market yields a 10% rate or return (on
average) on investments made in the market long term. Write an essay looking at
the advantages and disadvantages of investing in the stock market long term.
your essay in this document – do not save it in a separate file.
must clearly state your position with well-structured paragraphs using proper
grammar, spelling, and sentence structure.
is not an “opinion” question – you must offer evidence to support your
position, using properly-cited sources.
answer must be between ¾-1 page in length.
must cite and reference at least one source (book, website, periodical) using
APA format. The required website counts as one source
must state at least one clear advantage and one clear disadvantage in your
essay. However more references are recommended.
Some major stock market events to consider are the crash of 1929, the flash
crash of 2011, the dot com era of the late 90's, the fast drop in value in
2007-2008 then the market's climb back up in 2009 - 2012. Research into those
may help you to get started.
may submit your Assignments to the Math Center for review. Tutors will not
grade or correct the Assignment, but they will provide guidance for
improvement. Tutors will not, however, help you find web sites for the
sure to submit Assignments early enough to receive feedback and make
corrections before the Assignment due date (24 hour turn-around times
Monday-Thursday and 48 hour turn-around times on weekends are typical).
Data needed to answer
the internet, find a link that will tell you the average price of a gallon of
gas for a given time period.
the internet, find a website that will show you houses for sale.
website that shows one how to do fraction to decimal conversions.
the internet, find a website that one can use to find the national average cost
of food for an individual, as well as for a family of 4 for a given month.
website for your local city government.
Bankrate.com. (2015, March 25). Wall Street prime
rate. Retrieved from www.bankrate.com:
Please show work