Introduction:

This issue focused on finding the best finance institution of a period of 4-10 years. The
mathematics that is involved is financial maths, using Google sheets we will find out which
option is best. Using Google sheets we need to find the best interest rates for $2000 dollars
over 4-10 years. Option 1 is simple interest and option 2 is compound interest with different
rates for each.
Mathematical investigation:
Here is where the maths is done on google sheets, we used simple interest to find option 1 and
compound interest to find option 2.
Option 1 is done by simple interest - interest = principal x rate x time
Option 2 is done by compound interest - initial amount x rate, initial amount changes each year
so it is compounded annually.
see google sheets.
Analysis:
task 1 The balance of option 1 after 10 years was $3,150.00 and the balance for option to was
$3,211.55. For the first four years of the investment option 1 earns more. This happens because
of the way it is invested. The graph shows that over the 10 years option 2 is better, option 1 is
only good for 4 - 5 years but after that option 2 becomes much better. the advantage of
compound interest is that more interest is invested over a long time but not in a short time.