Exploring Linear and Exponential Growth

You and some friends have started your own company. After the first few months, the profits are rolling in. It is time to start thinking about putting your money to work for you. You decide that investing $5,000 into some Certificates of Deposit (CDs) would be a beneficial move.

With a CD, you lend your money to a third party, and after a set time, your money is paid back with interest. Before you start investing the company’s money this way, you need to pitch it to your friends.

For this project, you can develop a written report, a slideshow, a video, or any other platform as long as it fully addresses the criteria listed below.

  1. Research the highest interest rate (APY—annual percent yield) for 2-year and 5-year CDs. Document the company’s name, interest rate, and minimum investment. The minimum investment must be less than or equal to $5,000.
  2. Create the functions that represent the 2-year and 5-year CDs with your $5,000 investment. Use these functions to determine the amount you will be paid when the CD matures (the length of time for the specific CD). Show your work.
  3. An investor comes to your office. He says that if you give him the $5,000, he will add on an additional $50 each year to what he owes you. Create the function for this investor’s plan.
  4. Create a table showing the value of the two CDs and the investor’s plan for 5 years.
      Year 1 Year 2 Year 3 Year 4 Year 5
    2-year CD          
    5-year CD          
    Investor          
  5. Explain to your friends how to prove that the investor’s plan is a linear function and the CDs are exponential functions. Use complete sentences.
  6. Find the average rate of change for the investor’s plan and the 5-year CD between years 2 and 3, and between years 3 and 5. Explain what this shows in complete sentences.
  7. One of your friends suggests another 5-year option that gives interest based on the function k(x) = 5000(1.02)x. Explain what the 1.02 represents in terms of the CD and if it is a better plan than the 5-year CD you found. Use complete sentences.
  8. Make a final recommendation on what plan you and your friends should follow. Consider that you cannot collect your money from a CD until it has fully matured. Your recommendation should be at least three sentences long.

 

 
Looking for solution of this Assignment?

WHY CHOOSE US?

We deliver quality original papers

Our experts write quality original papers using academic databases.  

Free revisions

We offer our clients multiple free revisions just to ensure you get what you want.

Discounted prices

All our prices are discounted which makes it affordable to you. Use code FIRST15 to get your discount

100% originality

We deliver papers that are written from scratch to deliver 100% originality. Our papers are free from plagiarism and NO similarity

On-time delivery

We will deliver your paper on time even on short notice or  short deadline, overnight essay or even an urgent essay