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CD vs Savings - American School of Asuncion

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CD vs Savings - American School of Asuncion Powered By Docstoc
					October 14th, 2010

Your mission is to determine which is better, a savings account or a
certificate of deposit. Today, your job is to use four different financial
institutions (banks) and compare their savings account rates and their
CD rates. Find the two year rate for a certificate of deposit and the
savings account rate. Use those rates to solve how much money you
would have if you had a $1000 balance and your money was in the
bank for 2 years. Fill out the chart below with your findings.



Your equation:



I=P∙r∙t

I is the amount of interest the account earns

P is the principle or the amount of money that is originally put into an
account

r is the interest rate and must always be in DECIMAL form, rather than
percent

t is the amount of time the money is in the account
Financial Institution _________________________
             Starting       Interest Rate Length of   Total amount
             Balance                      Term        in account
             Principle
Certificate $1000                         2
of Deposit
Savings      $1000                        2
Account

Financial Institution _________________________
             Starting       Interest Rate Length of   Total amount
             Balance                      Term        in account
             Principle
Certificate $1000                         2
of Deposit
Savings      $1000                        2
Account

Financial Institution _________________________
             Starting       Interest Rate Length of   Total amount
             Balance                      Term        in account
             Principle
Certificate $1000                         2
of Deposit
Savings      $1000                        2
Account

Financial Institution _________________________
             Starting       Interest Rate Length of   Total amount
             Balance                      Term        in account
             Principle
Certificate $1000                         2
of Deposit
Savings      $1000                        2
Account

				
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