Interest Earned by Saving and Investing

    

Exponential Growth-  change that happens when a beginning amount grows by a consistent rate over time.

Develop a Savings or Investment Plan

      1. Make a goal for saving or investing money.  

2.   Decide on a beginning amount to put toward your savings or investment goal.

3. Choose an interest rate.  Savings account (.005-.01),  Investment Account (.01-.09)

Website Links: Savings interest rates

                        Investing interest rates

4.  Construct a table to record your data.  Include beginning amount, interest earned, and ending amount

5.   Create a line graph to show changes over time. 

Example Savings Goal

Goal- $2,000 down payment on a used Toyota Prius in 5 years

Beginning Amount $800.00

Interest Rate: 6% (.06)  Mid-Term Bond Mutual Fund

Year       Beginning       Yearly        Interest       Ending 

                 Amount        Savings     Earned         Amount

1              800                 100                 54                      954

2              954                 100                 63                     1117

3              1117               100                 73                      1290

4              1290               100                 83                      1473

5              1473               100                 94                      1667

6    6              1667               100                106                     1882

      7              1882               100                119                     2101