MAT 221 Entire Course of Ashford University | Just Question Answer MAT 221 Entire Course of Ashford University | Page 17

Initial Investment
Read the following instructions in order to complete this discussion, and review the
example Preview the document of how to complete the math required for this
assignment:
Think of something you want or need for which you currently do not have the funds.
It could be a vehicle, boat, horse, jewelry, property, vacation, college fund,
retirement money, or something else. Pick something which cost somewhere
between $2000 and $50,000.
On page 270 of Elementary and Intermediate Algebra you will find the “Present
Value Formula,” which computes how much money you need to start with now to
achieve a desired monetary goal. Assume you will find an investment which
promises somewhere between 5% and 10% interest on your money and you want to
purchase your desired item in 12 years. (Remember that the higher the return, usually
the riskier the investment, so think carefully before deciding on the interest rate.)
State the following in your discussion:
The desired item
How much it will cost in 12 years
The interest rate you have chosen to go with from part b