# CD vs Savings - American School of Asuncion

Document Sample

```					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.

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

```
DOCUMENT INFO
Shared By:
Categories:
Stats:
 views: 7 posted: 1/13/2011 language: English pages: 2