Initial Investment — MAT221
Read the following instructions in order to complete this discussion, and review the example of how to complete the math required for this assignment:
- Think of something you want or need for which you currently do not have the funds. It could be a vehicle, boat, horse, jewelry, property, vacation, college fund, retirement money, or something else. Pick something which cost somewhere between $2000 and $50,000.
- On page 270 of Elementary and Intermediate Algebra you will find the “Present Value Formula,” which computes how much money you need to start with now to achieve a desired monetary goal. Assume you will find an investment which promises somewhere between 5% and 10% interest on your money and you want to purchase your desired item in 12 years. (Remember that the higher the return, usually the riskier the investment, so think carefully before deciding on the interest rate.)
- State the following in your discussion:
- The desired item
- How much it will cost in 12 years
- The interest rate you have chosen to go with from part b
- Negative exponent
- Rules of exponents
Your initial post should be 150-250 words in length.