Section 1
1. Section 1
1.40. Connect
Section 1: Simple and Compound Interest
Connect
Going Beyond
So, do you still want to become a millionaire?
Suppose you had saved $2000 from your part-time job and invested this sum at 3% compounded annually for 50 years. At the end of 50 years, without investing a cent more, you would have $8767.81. But suppose you saved $100 a month and added $1200 to your investment at the end of each year.
Use the Simple Interest - Compound Interest Calculator to answer the following questions.
- Change the yearly investment to $1200 to see how much money you would have.
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The result may have surprised you. Now try changing the initial investment, interest rates, or annual investment amounts to see how you can become a millionaire.
Project Connection
You are now prepared to finish the Section 1 Project: Capturing Your Interest! Begin Steps 5 and 6, and then submit the entire completed project to your teacher.
Lesson 4 Assignment
Your lesson assignment contains some problems for you to solve using knowledge gained during the lesson. Now you will have the chance to apply the concepts and strategies learned to a new situation. Show work to support your answers.
Open the Lesson 4 Assignment that you saved to your course folder and complete the questions.