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MAT101 MOD3 SLP - earned over the period of time that it...

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RODNEY BUCKMIRE MAT101 – Module 3 – SLP Dr. Schek A = ce^rt July total money in the bank $2100 = c is the initial deposit or capital T= for time, R is the rate of interest and A will be the final amount Capital(c) = 2100, interest rate(r)= 2%, Time (t)=5 years, e=2.7182818284 Money kept for 5 yers in savings with interest of 2% Formula = 2100e^(0.02*5)=2318.57 Interest earned= 2318.51-2100=$218.57 5 year Certificate of Deposit with interest rate of 4.5% A=ce^, rt 2100e^, 4.5*5=2680.19-2100=$518.98 I had money sitting in a savings account for many years at a 3% interest rate. The interest that I
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Unformatted text preview: earned over the period of time that it was in there was not anywhere near enough to make a financial gain. I believe Certificates of Deposits will result in the same outcome even though the interest rate may be high. You have to put your money somewhere. If I had to choose between an interest bearing savings account and a CD, I would more than likely choose the CD if I were looking to make a financial gain....
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