Thursday, February 24, 2011

Due:  Tuesday, March 1, 2011

You will examine the amount of savings you would have if at birth someone had invested $100 in your name at the “prime interest rate.” The prime rate is an important index used by banks to set rates on many consumer loan products, such as credit cards or auto loans (Bank.com).  You will then compare that to a savings account in which someone else annually deposited $20 in your name after also giving you $100 at birth. Your data will be organized using a spreadsheet.

1.            Tables of both savings situations (print out the spreadsheet) with all data                         clearly labeled.

2.            ONE graph comparing both savings situations with all data clearly labeled.

3.            A typed analysis of how both savings situations have performed up until now:              which one is better, why, and under what circumstances.  How much will you have in each account at age 30?