Portfolio problem math for buisness decisions

Math 1324–________ Name__________________________

A. Martin November 13, 2014

Math for Business Decisions I — Portfolio Problem #3 (Chapter 5)

The Portfolio Problems are designed to give you practice in submitting a professional-looking

presentation of your work. Consequently, you want these documents to reflect your personal

level of excellence to make a good impression with potential business associates. The following

requirements for submitting 1324 Portfolio Problem all s will help you achieve this:

1. All work must be done . You print the portfolio p in pencil only MUST ages and do your work on

those pages, not on other paper. Errors should be fully erased, not marked through. Portfolio

pages MUST be stapled together. Do not attach spiral paper with ragged edges. Neat work

automatically makes a good first impression.

2. All your steps must be shown to receive full credit for your answers. If work is done on the

calculator, you must still show how you set up the problem before entering it into your calculator.

3. Answers requiring complete sentences should include proper capitalization, correct spelling, and

appropriate punctuation. This is formal writing, not texting.

4. Any graphs should be drawn using a straight edge, not sketched free hand. All graphs should be

labeled with the equation or inequality. Ordered pairs should always be in parentheses.

The following problem uses the Chapter 5 skills you have learned to study the issue of saving for

retirement. You may work alone in small groups to or do the work in this problem. You may

use your book, notes, etc. to help you complete the problem, but please do not ask the Math

Outreach Center tutors for help in working this problem. Late portfolio problems will be not


Portfolio Problem #3 Due Date: Tuesday, November 25, 2014 at the of Class! Beginning

(The total problem is worth 100 points.)

When people are struggling financially, they often don’t believe that they can make a difference in their

financial security in future years by disciplining themselves to save money regularly now. The goal is

simply too big to tackle when you are struggling to make ends meet every month. Instead, people in

this situation often fall prey to one of two self-defeating behaviors:

A. They invest money in a fantasy like buying lottery tickets with hopes of winning a $30 million

jackpot for an investment of a few dollars’ worth of tickets, , OR

B. They know that trying to win the lottery isn’t practical, so they offer themselves a small, often daily

luxury that they feel they can afford, like a mocha latte from the local coffee house. (Another

example of such an indulgence would be a weekly pedicure.)

Let’s see what happens if we modify those behaviors a little. (Round all of your answers to the

nearest cent.) Math 1324 – Portfolio 3

 Page 2 of 3

1. Assume that 25-year-old Denise wastes $10 per week buying lottery tickets, averaging $520 per

year. Now let’s assume that Denise “sees the light” and decides to take that $520 she would have

spent on lottery tickets and deposit it at the end of each year in an annuity paying 6% compounded


a. How much would Denise have in this annuity after 20 years?

 Answer: __________________________________

 b. Find the interest her money has earned during that 20 years.

 Answer: __________________________________

2. After a couple of years, 27-year-old Denise feels so good about the money she’s been saving instead

of buying futile lottery tickets that she takes investing in herself a step further. To face her

sometimes frustrating job, Denise has typically bought a large mocha latte every day on her way to

work Monday through Friday. She decides to stop buying that coffee just two days a week, and

add that additional $40 she’s saving every month (for a total of $480 a year) to a new Roth IRA

account that pays her 7% compounded monthly.

 a. How much would Denise have in this IRA annuity account after 18 years?

 Answer: __________________________________ Math 1324 – Portfolio 3

 Page 3 of 3

 b. Find the interest her money earned during that 18 years.

 Answer: __________________________________

3. By now, Denise is 45 years old. She’s got a pretty good job, but she’s starting to think about

retirement and realizing that Social Security just isn’t enough to live on after age 65. Since her

IRA pays a little better interest than that 6% annuity paid (and compounds it more often), she

decides to move all the 6% money into the IRA account with the other money.

a. How much total money does she begin with in the IRA account at this point?

 Answer: __________________________________

b. Up to this point, Denise has been saving $1000 a year ($520 + $480 in the two accounts).

Because she’s making better money now, she wants to increase her investment in herself by

putting $150 a month ($1800 a year) into the IRA account on top of the money that’s

already in there. So…how much money will be in total that IRA account in 20 years when

she turns 65?

 Answer: ______________________________

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.


Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.


Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?


Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.


Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.


Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !


Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.

Open chat