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Money Growth Over Time

by Kate
(Australia)












































TASK

As an advisor you want to produce a display on your computer to show clients how their money grows. produce such a display so that clients can quickly and easily see how their money grows. Provide hard copies of two situations with a short explanation of each.

For the first situation, I have made a graph, but I'm not sure if it's right. And I don't know what to do for the second situation.

thanks

Comments for Money Growth Over Time

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Sep 03, 2011
Money Growth Over Time
by: Staff


The question:

by Kate
(Australia)

TASK

As an advisor you want to produce a display on your computer to show clients how their money grows. produce such a display so that clients can quickly and easily see how their money grows. Provide hard copies of two situations with a short explanation of each.

For the first situation, I have made a graph, but I'm not sure if it's right. And I don't know what to do for the second situation.

thanks


The answer:

Your graph looks like it’s correct. However, the file you uploaded is a little blurry - it is hard to read the numbers.

I completed two sample calculations and plotted them using excel for comparison purposes. The graph should be comparable to yours.


Situation 1 – Deposit $5,000 in an interest bearing account. Interest Rate 5% per annum, compounded quarterly. No additional deposits made.


(1) Click the following link to VIEW a snapshot of the excel spreadsheet computations; or (2A) highlight and copy the link, then (2B) paste the link into your browser Address bar & press enter:

Use the Backspace key to return to this page:

http://www.solving-math-problems.com/images/table_a_2011-09-02.png




Situation 2 – Deposit $5,000 in an interest bearing account and add $120 per year deposited the last day of the year (only $10 per month). Interest Rate 5% per annum compounded quarterly.



(1) Click the following link to VIEW a snapshot of the excel spreadsheet computations; or (2A) highlight and copy the link, then (2B) paste the link into your browser Address bar & press enter:

Use the Backspace key to return to this page:

http://www.solving-math-problems.com/images/table_b_2011-09-02.png




Comparison using an excel scatter plot



(1) Click the following link to VIEW a snapshot of the graphical comparison; or (2A) highlight and copy the link, then (2B) paste the link into your browser Address bar & press enter:

Use the Backspace key to return to this page:

http://www.solving-math-problems.com/images/graph_comp_int_2011-09-02-a.png


Thanks for writing.

Staff
www.solving-math-problems.com



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