Wednesday, March 3, 2010

Focus Question : HW Algebra I Honors

Would you rather have $500 in an account paying 6% interest compounded quarterly (4x a year) or $600 in an account paying 5% interest compounded annually (once a year)? Why? (Summarize your reasoning.)
Posted by at
Labels:

10 comments:

  1. AnonymousMarch 3, 2010 at 12:48 PM

    Id rather have $500 with 6% interest qyarterly. because when you work these problems out you end up with 631$ in 1 year and with the other you get 630$. and in the long run you get more from the 500$ w/ 6%
    -jesse

    ReplyDelete
  2. AnonymousMarch 3, 2010 at 12:51 PM

    I would rather have $500 in an account and 6% interest because 500x1.05^4=$632.24. Even though 600x1.05^1=$630.00, those $2 can come in handy. That can go to me getting a cookie at lunch. Like I said, I would rather have as much money as I need, so going with teh first choice is obviously the better choice.
    Brendan Mulligan

    ReplyDelete
  3. AnonymousMarch 3, 2010 at 1:02 PM

    I would rather hve 500 in an account with 6% interest. I chose this because when you multiply 500 times 1.06^4 you get $631.24. Whebn you multiply 600 times 1.05^1 you get $630. you would get 1 dollar more but it can possibly make a difference
    -anthony

    ReplyDelete
  4. AnonymousMarch 3, 2010 at 2:42 PM

    I would rather have 500 in account with 6% interest quarterly. After a year i would have $631.24.I found this out because 500 x 1.06^4=631.24 With the account with 600 dollars and a 5% annual interest, in a year i would have $630. I figured the amount in a year because 600 x 1.05^1=630. In two years with the account of 500 dollars with a 6% interest quarterly i would have $796.92 because 500x 1.06^8=796.92. With the account of $600 in two years i would have 661.50 because 600 x 1.05^2=661.50.
    Simon Bellido

    ReplyDelete
  5. AnonymousMarch 3, 2010 at 2:53 PM

    I would rather have 500 buck account with the 6% percent increase. This is moslty becuse 500 X 1.05^4=$632.24 and
    600 x 1.05^1=$630.00. The reasobn why i pick this is because if there is a %6 increase in your money in the bank due to interest every 3 months you will eventually have more money due two the fact that every three months 6% interest is added to your money that was added a 6% interewst three months before thus building in the long run a higher fortune than just 5% interest at the end of the yea
    With interest your account of whatever bank you have goes up by a certain apercent (in this case 6%) each year giving you these answers. Finaly the bank is paying us. =)
    The difference is around $2.00. If i ha the two dollars extra i could donate to hunger releif or i could riectly help the problem by bying myself some lunch. Negron

    ReplyDelete
  6. AnonymousMarch 3, 2010 at 6:58 PM

    I would rather have $500 with 6% interest that is compounded quarterly then $600 with 5% interest that is only annually compounded.
    500*1.06^4=$631.24
    600*1.05^1=$630.00
    631.24 > 630.00 which means more money ☺
    -Madden-

    ReplyDelete
  7. AnonymousMarch 3, 2010 at 7:02 PM

    I would rather have the 500 in the account w/ 6% interest. This is due to 500 x 1.06^4= $631.23848 while 600 x 1.05^1= $630.00. With this you attain a little bit more money with the 500 along with 6% interest.
    Alex Goncalves

    ReplyDelete
  8. AnonymousMarch 3, 2010 at 8:40 PM

    .

    ReplyDelete
  9. AnonymousMarch 4, 2010 at 5:39 AM

    Good job guys. Brendan - you may want to check your calculations.

    Nick - nice personal touch, I love it!

    How would that 1.24 add up compounded over 10 years?

    ReplyDelete
  10. AnonymousMarch 4, 2010 at 2:24 PM

    Anonymous said...
    PSP (Problem Solving Procedure)
    Method: Exponential Growth and Decay

    $500= one account.6%=is how much interest you pay compunded quarterly. For $500.4x a year=cmpounded quarterly.$600=the other acoount.5%=is how much interest you pay compounded annully. For $600.

    Y=A X B^X=exponential function.
    X=exponent. number of years. 4yrs. for $500 and 1yr. for $600. Y=money or account.A=the intial deposit. $500 and $600.B=interest. For $500, 100% + 6%=106%=1.06.

    Y=$500 X 1.06^4=631.23848=631.24.Y=$600 X 1.05^1=630.631.24 is greater than 630. Thus, i would go for the $500 in an account paying 6% interest. Mark Soriano

    ReplyDelete

Subscribe to: Post Comments (Atom)