I NEED HELP WITH THIS MATH PROBLEM PLEASE THANK YOU SO MUCH
Stock 1
Company Name:
Stock Abbreviation:
One Year Return:
Stock 2:
Company name:
Stock abbreviation:
One year return:
Okay, now we are going to use the equations above to figure out what the total amount we’d have (including the initial investment) if we put in $5000 into each of these stocks for 5 years. Take the one year return as a consistent interest rate. Use the space here to figure
-Stock 1 Total:
-Stock 2 Total:
Great, and now we are going to figure out if it is more important to find a better interest rate, or invest for a longer period of time. So first let’s double the interest rates (or one year returns) of each stock. Record the new one year returns here:
-Stock 1 and Doubled One Year Return:
And so let’s do the same thing we did earlier. Say we have $5000.00 put into each stock, find the total amount in the investment after 5 years using the new, doubled, one year returns as the interest rate. Use the space here to find the total for the first stock:
-Stock 1 and 2 Total with Doubled Interest Rate:
And now you’re going to do the same thing except we will double the time period instead. So using the original one year returns you recorded earlier, an initial investment of $5000.00 in each stock, and time period of 10 years, find the total amount in the investment.
-Stock 1 and 2 total with doubled Time period:
---For stock 1, which value is larger, the one with the doubled interest rate, or the doubled investment period? By how much?
--- And for stock 2, again, which value is larger? And by how much?