HELP!
Option 1: You invest $50/ month at a rate of 3.5% APR compounded monthly for 35 years.

Option 2: You invest $150/ quarter at a rate of 4.15% APR compounded monthly for 35 years.

Option 3: You invest $4,000 at a rate of 5.5% APR compounded monthly for 35 years.

Complete the table below and answer the questions below it.
You may use this calculator http://www.mycalculators.com/ca/savecalcm.html to help you. (Hint: The “Present Value” for options 1 and 2 is 0 while for option 3 it is $4,000.00. Also, the top radio button in the Contributions box should be selected so that contributions are made at the beginning of the period.)

Option #
Contributions
Final Balance
Total Interest Earned
1



2



3

How did you calculate the contribution for each option? In which option would you contribute the least?

Which option yielded the highest amount at the end of the 35 years and what was the basis of the plan?

What is the difference in the principal invested for the highest and lowest final balances? What is the difference in the interest earned?

What plan would you recommend for the largest return on investment? (This means the most interest for the least amount invested

How does the differing interest rates in each option play into your recommendation?