• Annual simple interest of 12% applied at the end of 6 months. • A monthly interest rate of 1% applied at the end of each month and before the start of the next month. Discuss why the two methods result in different results. In what circumstances might you select one option over another? An increase in value of any collection is not guaranteed for a variety of reasons. If you are a collector, please use your own collection to answer the following questions. If you are not a collector, research to find a collection for your answers. What are some of the factors that could cause the value of your collection to drop in the future? What questions should an investor ask before investing in anything? If no new memorabilia can be created with an autograph, how does the idea of scarcity increase the value of an item? Provide two replies to other student posts.

These replies should be at least 2-3 sentences and should be written to further the discussion. The Discussion Board is where you post your responses to the Discussion topics and share your experiences in completing exercises and applying the concepts of this course. You will need to post an initial response that thoroughly covers the topic(s). You will also need to respond substantially to at least two of your classmates’ posts. These replies should be at least 2-3 sentences that further the discussion (remark on something specific from the post, tactfully point out mistakes, ask questions about the post, etc.). You should post throughout the unit to get assistance on problems with which you may be having issues. This will also to give your classmates the opportunity to respond to your ideas. 2,000, after 12 months, earning 7% APR, compounded monthly, by compounding manually. Reminder: Be sure to show your work, and to calculate the period interest before solving.

160,000 Certificate of Deposit that pays compounded interest every six months at the rate of 5% per year. The CD has a term of 5 years. 1.00” table in your textbook. How much interest was earned on the investment? 300,000 and decide to invest it for 30 days compounded daily at 6.75% annual interest. After the 30 days, you are going to invest your new found money in a startup business. How much interest is earned on this investment? How much money will you have to invest in the startup after the 30 days? 400,000 in 30 years when I retire? 1.00” table in your textbook. How much interest did you earn over the life of the investment? 9000 at 3% is compounded semiannually for four years. 1.00 future value table or the future value and compound interest formula. 1000 at 12% is compounded monthly for two years . 1.00 future value and compounded interest formula.

1000 at 14% for three years compounded annually . Compare the compound interest with simple interest for the same period. 6,200 at 5 ½ for three years compounded annually. What is the compound amount of the loan and how much interest will pay on the loan? 3000 for four years compounded annually at 9% how much interest was john required to pay on the loan? 1.00 future value table or the future value and compounded interest formula. 8500 compound quarterly for four at 10%. What is the effective interest rate for the loans? 3500 investments at 0.75% compounded daily for 24 days. 8. John smith has found a short term investments opportunity. 6000 at 0.75 interest is compounded daily? 9. Find the amount that should be set aside today to yield the desired future amount. 10. A landlord wants to work only 10 more years and then retire. 330000 in the bank . 1 milion between the two investments to retire on complete parts 1. Through 5?

Saving for retirement or a large purchase, such as a house, can be done by beginning with a small amount per month; as your income increases, the amount you set aside per month can also increase. Choose a scenario of savings in a retirement plan such as a 401(k) or an annuity. Plan a monthly deposit (you choose the amount, but be realistic) for 5 years into an account that will earn interest at 5%. Find the future value for this account. Calculate the amount of interest earned on this account. Then, calculate that same monthly investment amount for 30 years. Calculate the future value of the investment after the 30 years. Calculate the amount of interest on this account as well. Discuss how a small, monthly investment can grow into a substantial amount if you are consistent and do not touch the funds as they grow. Provide two replies to other student posts.

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