You have accumulated some money from gifts/babysitting/your paper route/selling things on ebay/whatever it is you do for money. You’d like to invest $500 of it for four years because you want the big bucks for college. There are three different banks in your area that all pay a 4.0% interest rate, but they each have a different compounding policy. At Bank A the interest is compounded annually, at Bank B it is compounded quarterly, and at Bank C it is compounded monthly. What impact does compounding have? Where should you invest your money? WHO KNOWS?
Well, we are going to find out! Make Dave Ramsey proud and figure out where would be best to invest your money by downloading the following set of instructions and making a spreadsheet in Microsoft Excel to solve this problem. When you are done with your spreadsheet, upload it to your Google Drive and share it with Mrs. Puglisi so you can get a grade! After you finish, there is also a form with a few questions you need to answer—make sure you do it!
Click here to download the instructions for your spreadsheet.
Click here to go to the form you need to fill out.