Isabella De La Rosa
Type of Account: Savings Account
Interest Rate: 0.01%
Type of Account: Individual Retirement
Account
Interest Rate: .03%
Compounded: monthly
Compounded: Daily
a. 1 year
P(1)= 2,000 (1+ .0001/12)12*1
= 2,000 (1.000008333)12
= 2,000 (1.000100005)
= $2,000.20
b. 5 years
P(5)= 2,000 (1+ .0001/12)12*5
= 2,000 (1.000008333)60
= 2,000 (1.000500123)
= $2,001.00
c. 10 years
P(10)= 2,000 (1+ .0001/12)12*10
= 2,000 (1.000008333)120
= 2,000 (1.001000456)
= $2,002.00
d. 20 years
P(20)= 2,000 (1+ .0001/12)12*20
= 2,000 (1.000008333)240
= 2,000 (1.002001913)
= $2,004.00
e. 45 years
P(45)= 2,000 (1+ .0001/12)12*45
= 2,000 (1.000008333)540
= 2,000 (1.004509941)
= $2,009.02
a. 1 year
P(1)= 2,000 (1+ .0003/365)365*1
= 2,000 (1.000000822)365
= 2,000 (1.000300045)
= $2,000.60
b. 5 years
P(5)= 2,000 (1+ .0003/365)365*5
= 2,000 (1.000000822)1825
= 2,000 (1.001501275)
= $2,003.00
c. 10 years
P(10)= 2,000 (1+ .0003/365)365*10
= 2,000 (1.000000822)3650
= 2,000 (1.0003004804)
= $2,006.01
d. 20 years
P(20)= 2,000 (1+ .0003/365)365*20
= 2,000 (1.000000822)7300
= 2,000 (1.006018637)
= $2,012.04
e. 45 years
P(45)= 2,000 (1+ .0003/365)365*45
= 2,000 (1.000000822)16425
= 2,000 (1.013592899)
= $2,027.19
Isabella De La Rosa
Type of Account: Certificate of Deposit
Type of Account: Money Market Account
Interest Rate: Rate varies according to
months held in bank
Compounded: Daily
Interest Rate: .05%
a. 1 year
P(1)= 2,000(1+ .002/365)365*1
= 2,000(1.00000547945206)365
= 2,000(1.00200199584550220629)
= $2,004.00
b. 5 years
P(5)= 2,000(1+ .0075/365)365*5
= 2,000(1.00002054794521)1825
= 2,000(1.03821159709988597994)
= $2,076.42
c. 10 years
P(10)= 2,000(1+ .0125/365)365*10
= 2,000(1.00003424657534)3650
= 2,000(1.1331460277112299858)
= $2,266.29
d. 20 years
P(20)= 2,000(1+ .0125/365)365*20
= 2,000(1.00003424657534)7300
= 2,000(1.28401992011773959488)
= $2,568.04
e. 45 years
P(45)= 2,000(1+ .0125/365)365*45
= 2,000(1.00003424657534)16425
= 2,000(1.755037752935)
= $3,510.08
a. 1 year
P(1)= 2,000(1+ .0005/365)365*1
= 2,000 (1.000001369863014)365
= 2,000 (1.00050012467828)
= $2,001.00
b. 5 years
P(5)= 2,000(1+ .0005/365)365*5
= 2,000 (1.000001369863014)1825
= 2,000 (1.002503125889733085561)
= $2,005.01
c. 10 years
P(10)= 2,000(1+ .0005/365)365*10
= 2,000(1.000001369863014)3650
= 2,000(1.00501251741868602317)
= $2,010.03
d. 20 years
P(20)= 2,000(1+ .0005/365)365*20
= 2,000(1.000001369863014)7300
= 2,000(1.01005016016824467714)
= $2,020.10
e. 45 years
P(45)= 2,000(1+ .0005/365)365*45
= 2,000(1.000001369863014)16425
= 2,000(1.0227550184064)
= $2,045.51
Compounded: Daily
MLA Citation:
"Chase.com." Chase.com. N.p., n.d. Web. 1
Mar. 2012.
<https://www.chase.com/>.
Isabella De La Rosa
Times for the $2,000 to double:
Savings Account:
Certificate of Deposit:
4,000= 2,000 (1+ .0001/12)12*t
2,000
4,000= 2,000(1+ .002/365)365*t
2,000
2= (1+ .0001/12)12*t
2= (1+.002/365)365*t
log(2)
_
log(1+.0001/12)
83178.00857
12
= 12t
log(2)
_
log(1+.002/365)
= 365t
126499.70702631991206
365
= t
= t
t= 6931.500714
6,931 years in June on the 1st day
t= 346.57453979813674536986
346 years in June on the 26th day
Individual Retirement Account:
Money Market Account:
4,000= 2,000 (1+ .0003/365)365*t
2,000
4,000 = 2,000(1+ .0005/365)365*t
2,000
2= (1+ .0003/365)365*t
2= (1+ .0005/365)365*t
log(2)
_
log(1+.0003/365)
log(2)
_
log(1+.0005/365)
843329.4247
365
= 365t
= t
t= 2310.491574
2,310 years in May on the 27th day
505997.7934
365
= 365t
= t
t= 1386.295324
1,386 years in March on the 16th day
Isabella De La Rosa
To get to $10,000 using a Savings
Account:
10,000= 2,000 (1+ .0001/12)12*t
2,000
5= (1+ .0003/365)365*t
log(5)
_
log(1+.0003/365)
= 365t
1958150.26475445221122
365
= t
t=5364.79524590260879786301h
5,364 years in September on the 6th
Time it takes to reach $10,000 with a
Savings Account
Months
12
20
25
26
27
with
without
interest
interest
$5,600.56 $5,600.00
$8,001.33 $8,000.00
$9,501.98 $9,500.00
$9,802.12 $9,800.00
$10,102.27 $10,100.00
