Questions for the quiz on Thursday:
1. If you begin by investing $3000 for 6 years at 4% interest in a savings bond, how much money will you get total by then end of the 6 year period?
2. If you begin by investing $3000 for 6 years at 3% interest in a CD, how much money will you get total by then end of the 6 year period?
3. If you invest $800, and at the end of 1 year, you have $830, what annual interest rate did you earn?
4. Each of the graphs below show the total amount you have from an investment in either bonds (simple interest) or CDs (compound interest. Explain for each graph whether it is the graph of a bond investment or a CD investment, and how you know:
| A. | |
B. | |
CDs http://www.bankrate.com/brm/rate/high_ratehome.asp?params=US,416&product=19
Bonds https://trading.fast-trade.com/fmsbonds/bondsearch.do
YTM http://www.moneychimp.com/articles/finworks/fmbondytm.htm