You just received $10,000 from a long lost uncle as a graduation gift. You must decide whichfinancial institutionand what type of account you will put it in. Your goal is to obtain as much interest as possible, because you have big plans for the future.
Steps:
(1) Visit the websites of several financial institutions to determine which bank/account offers the best interest rates. Be aware of extra fees and required minimum balances.
(2) Use attached worksheet “Bank Form” to complete the questions. It must be turned in with your final project.
(3) Use the worksheet to record your findings for the top three saving accounts.
(4) Use the highest yielding interest rate to determine what your account will be worth in 10, 25, and 40 years.
RESOURCES – press “CTRL” and click the link to go directly to the website if viewing online. You may use other bank sites besides what is listed here.
Bank of America
Chase Bank
US Bank
Wells Fargo
State Employees Credit Union
Asheville Savings Bank
Home Trust Banking
Part 1 Checklist
Found 3 bank sites that pay the highest interest.
Make sure you have read the “fine print” regarding terms and conditions related to minimum deposit amounts, and minimum amount of time deposit must be left in an account.
Completed the “Bank Form” worksheet / Part 2 - Automobile
Now that you are commuting to work every day, you are considering buying a new car. However, you are undecided if you should invest in a new car or just keep the one you have. You have heard that cars depreciate a lot, and you don't want to waste your hard earned money.
Let's do a little investigating to see if cars really do depreciate and if so, by how much.
Decide on a usedautomobile that you would like to purchase. Find theauto in an advertisement in the newspaper, car magazine, or internet. You mustattach a copy of the advertisement to your work.The vehiclemust be at least 3 years old.For it, you must:
- Determine the current price.
- Determine the original price when the car was sold new.
- What is the rate of depreciation? Write an equation that represents the model of the car’s depreciation.
- Using that model, what will the car be worth in 5 years?
- Graph the information above. You may sketch your graph on thispaperor use an online graphing program.
- When will the car be worth zero?
- Is a car an investment? Why or why not?
RESOURCES:
Cars for Sale
Auto Trader
Kelley Blue Book
Create a Graph Online
Part 2 Checklist
Find and cut out/print advertisement for your vehicle, including picture and details of vehicle.
Complete the “Vehicle Form” worksheet
Create online graph to represent your data.
Print copy of graph / Part 3 – Housing
- Decide on a house that is being advertised for sale. Include a copy of the advertisement in your work.
- What is the current value of the house?
- How old is the house?
- What was the original price of the home or the price of the home when purchased years ago?
- What is the rate of appreciation? Write an equation to represent the home’s appreciation.
- Using that model, what will be the price of the home in 10 years?
- Show a graph of the information above.You may sketch your graph on thispaperor use an online graphing program.
- When will the home triple in value? (From current value)
- Is a house an investment? Why or why not?
RESOURCES:
Prudential
Tarbell
Century 21
Zillow
Create a Graph Online
Hint: it may be easier to decide on a house in which you know the current owners. You can ask them what they paid when they purchased the home. Don't forget to find out what year they purchased it. Then use a site such as Zillow to determine the current price of the house.
Part 3 Checklist
Find and cut out/print advertisement for your home, including picture and details of home
Complete “House Form” worksheet.
Create online graph to represent your data using the