# Business Algebra

posted by
**Tracey** on
.

Part I:

As a financial planner a client comes to you for investment advice. After meeting with him and understanding his needs, you offer him the following two investment options:

Option 1 (refer to section on Mathematics of Finance in your text.): Invest $23,000 in a savings account at 4.25% interest compounded quarterly.

Option 2 (refer to section on Mathematics of Finance in your text): Invest into an ordinary annuity where $5,000 is deposited each year into an account that earns 6.6% interest compounded annually.

SPREADSHEET:

Set up the formula for compound interest for Option 1 and the formula for Future Value of an Annuity for Option 2 in an Excel spreadsheet to calculate the amount earned at the end of 5 years.