At your graduation you are given $5000. You choose to invest it into a bank account to increase the value of your money. At the same time your parents by a car that you fell in love with. They
will let you buy the car from them with the money in your account when the car is the same
value as the amount of money in your account. Calculate the following information and
determine how long it will take for your money to grow and the car to depreciate until they are
equal in value. Graph both lines on the same graph.
Using A(t) = a(1+4)** or A(t) = u(1-2)***
If you deposit $5000 into a bank that earns 3.5% interest compounded quarterly. What are the
values of your investment at 1, 2, 3, 4, 5, 10, 15, and 20 years. Use graph paper and graph the
values for each year with the year as the x-axis and the money as the y-axis.
The car that is worth $15,000 depreciates at 13.5% per year. What are the values of the car
after 1, 2, 3, 4, 5, 10, 15 years. Use graph paper and graph the values of the car, using the year
with the x-axis and the money for the y-axis.
For Extra Credit prove your graphical answer Algebraically