Find Internet sites for three banks in your area. Locate the webpage for CDs in each site. You will discover that banks offer different deals on CDs depending on two parameters: the length of the CD and amount of deposit. To complete Part II of this assignment, suppose you have $2500 to deposit in a CD and you want to invest the money for 5 years. Within each bank’s website, identify what interest rate each bank will give you on the basis of these two values.

Next, assume that each bank uses the compound interest formula to compute the final balance of their CDs, and that interest is compounded annually. The formula for compound interest is given by:

where *A* is the final balance of the investment, *P* is the principal (or starting balance), *r* is the interest rate (given as a percentage, but one that you must convert to a decimal number), *n* is the number of times per year interest is compounded (recall you are assuming an *annual* compounding), and *t* is the length in years of the investment.

Compute the final balance of a 5-year, $2500 CD for each of the three banks you investigate.

Write a paragraph recommendation about which bank you would choose to have a CD with and why. Additionally, write about any realizations you gained about the importance of algebra and applying it to your personal finances and your future career. Identify two other fields of study or real-world applications for which algebraic skills are important to have. Support your opinion with examples.

Subject | Mathematics |

Due By (Pacific Time) | 07/20/2014 02:00 pm |

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