APY Common Core Project for High School

Students will be required to combine the APY formula with the Present Value for Compound Interest Formula to determine the final value of their investment and how much interest that would end of being. This project has been completed in Algebra 2 as well as Finite Mathematics but would fit well in Statistics. Your parents give you $10,000 to invest during college. You will receive the interest of whatever the money makes during you college career (4 years). You can invest in Ally Bank, Bank of America, Regions, EverBank, and Capital One Savings account. Which one would you pick and why?

APY = (1+r/n)^(n)-1

Present Value for Compound Interest A=P(1+r/n)^(nt)

Steps:

1. Find the APY of a saving account for each of these Banks. (Google it)
2. Plug it in the APY formula from the formula sheet and add 1 to solve for (1+rn)^(n).
3. Take and raise it to the number of years you are in college (look at the present value for compound interest formula).
4. Multiply that by your Principle (look at the present value for compound interest formula)
5. Find the interest for each of these investments.
6. Type a paragraph about why you picked the bank you did. Describe what you notice about the APY value and the amount of interest you earn.
7. For homework create a pamphlet, flier, or poster board advertising the bank you decided to bank with.
8. Prepare to present (Show your project to the rest of the class).

Points:

• 25 points for in class work (Want to see work for solution and paragraph)

• 25 points for pamphlet, flier, or poster board

• 5 points for presentation