Compound Interest and Investments

A WebQuest for 11th Grade Math

Designed by

Ed Downes

erd361@optonline.net

 

 

Introduction | Task | Process | Evaluation | Conclusion |

 Introduction

     How much money will you have when you retire? The answer to that question depends on how much money is saved and the way compound interest causes the investment to grow over time.  In this WebQuest activity you will visit websites that will enable you to report possible answers to the question

 

 


The Task

 

      Choose an amount of money that you think you could save each month towards your retirement. Using an investment future value calculator on a website, you will determine the amount of money you will have after a thirty year career, assuming a given interest rate. You will also find how much of this total amount came from interest earned compared to the amount that you invested.

 

 

 


The Process

 

  1. You will explore how money grows exponentially
  2. You will use an investment calculator to see how different periodic investments at various rates of interest over various time periods will yield different total savings.
  3. You will write a report summarizing an investment strategy that you think might apply to your life.

 

 

      Assume that you will have a thirty year career. Choose an amount of money that you could save monthly over this period at an interest rate that might be available. (An example might be $500 per month at 8.25% over 30 years). Enter this information in the investment future value calculator on the following website:

 

Link:      http://www.globalrph.com/davesfv.htm

 

 

      The calculator shows you the total value of your investment, and allows you to determine how much of the total was earned in interest. If you subtract the interest from the total value, you will calculate the amount of money that you put into the account.

You can change the amount saved monthly and the interest rate to see other possible investment strategies.

 

Further information is available at the following website:

 

Link:      http://www.fool.com/

 

 

Summarize the results of your research in a one page paper.

 

 

 

 

 

 

 

     

 

 

 

 

 

 

 


Evaluation

 

 

 

 

 

 

 

 

 

 

 

 


Conclusion

 

 

Last updated on August 15, 1999. Based on a template from The WebQuest Page