Reference no: EM132565435

Question - Suppose you have $600 to invest in a savings plan, and you want to compare 4 different ways you could invest the money.

Round answers to the nearest cent

Method 1: Find the balance after one year if you deposit all the money into an account that pays $2.50 in simple interest each month (this is a simple interest equation where the amount of interest stays the same each month).

Method 2: Find the balance after one year if you deposit all the money into an account that pays 5% APR with monthly compounding.

Method 3: Suppose you deposit nothing at the beginning and instead you divide up the $800 into 12 envelopes each with $50.

Find the balance after one year if you deposit one $50 envelope each month, all year, into an account that pays 5% APR with monthly compounding.

Method 4: Suppose you deposit $300 into an account that pays 5% APR at the beginning of the year and then you divide up the remaining $300 into 12 envelopes each with $25.

Find the balance after one year for the initial deposit of $300, if you also deposit one $25 envelope each month, all year, into the account that pays 5% APR with monthly compounding.