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##### Kaplan MM225 unit 6 assignment

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Question;Unit 6: Instructor;Graded Assignment;Compound Interest;In;this and future Instructor Graded Assignments you will be asked to use the;answers you found in the Unit 1 Assignment.;Note;For these questions you need to cite a reliable source for information, which;means you cannot use sites like Wikipedia, Ask.com?, and Yahoo? answers. If you;do use those sites the instructor may award 0 points for your response.;The;Assignment problems must have the work shown at all times. The steps for solving;the problems must be explained. Failure to do so could result in your;submission being given a 0. If you have any;questions about how much work to show, please contact your instructor.;Assignments;must be submitted as a Microsoft Word? document and uploaded to the Dropbox for;Unit 6. Please type all answers directly in this Assignment below the question;it applies to.;All Assignments are due by Tuesday at 11:59 PM ET of the assigned Unit.;Note;All interest rates are to be assumed to be yearly;interest rates.;Question 1(10;points);1.;You decide to invest $15000 into a bank account that that is compounding its;interest monthly. Assuming the bank is paying out an interest rate of the;current prime rate - 1% (In the event that prime - 1% is less than 1%, use 1%);and the investment is for 5 years;a) How much money;(total) do you have after the 5 years pass?;b) How much do you;earn in interest over the 5 years?;Question 2(10;points);2.;You wish to have $500,000 saved up in 30 years. Assuming that you can get an;interest rate of prime + 5% on your investment (compounded quarterly.);a);How much do you need to invest today to have $500,000 30 years in the;future?;b) How much of that total is;interest?;Question 3(10;points);3.;You borrow $50,000 at 5% interest (compounded daily).;a) After 1 year passes, you pay off;$25000 of the loan. How much do you;still owe on the loan?;b) After another year passes, you;wish to pay off the loan. How much do you need to pay to pay it off?;Essay;(15;points);4.;While everyone dreams of high interest rates for investments, usually high;interest rates come with other disadvantages. Using the interest or other;sources, research and write an essay on the advantages and disadvantages of;higher interest rates on investments. Look at factors like risk, reward, and;possible other things that would change to balance out the higher interest;rates.;Requirements;for essay;?;Write your essay in this document ? do not;save it in a separate file.;?;You must clearly state your position with;well-structured paragraphs using proper grammar, spelling, and sentence;structure.;?;This is not an ?opinion? question ? you must;offer evidence to support your position, using properly-cited sources.;?;Your answer must be between ?-1 page in;length.;?;You must cite and reference at least one;source (book, website, periodical) using APA format. The required website;counts as one source.;You;may submit your Assignments to the Math Center for review. Tutors will not grade;or correct the Assignment, but they will provide guidance for;improvement. Tutors will not, however, help you find web sites for the;Assignment.;Be;sure to submit Assignments early enough to receive feedback and make;corrections before the Assignment due date (24 hour turn-around times;Monday-Thursday and 48 hour turn-around times on weekends are typical).

Paper#60317 | Written in 18-Jul-2015

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