Whowants to be a Millionaire?

Name______________________________________________Date__________

Objective -- In this exploration, we will use spreadsheetsto recognize patterns and solve problems.

Why do people put their money in savings accounts? Althoughthere are several reasons, the main one is that banks pay intereston this money. This means that they will pay you a certain percentageof your money (plus the money you started with) just for keepingtheir money with you. For instance, if you put $100.00 in a savingsaccount that pays 5% interest per year, then at the end of theyear you would have ________. While this may not seem like a lot,interest can really add up over time.

Now let's suppose you had $2500.00 to invest in a savings accountthat paid 5% interest per year. Open the file Millionaire.Use your spreadsheet to answer the following questions.Be sure to tell how you found your answers.

1. How many years would it take you to become a millionaire,assuming that you do not add or take away any money from thisaccount?

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2. How does this value change if you begin your investmentwith $5000.00 instead of $250.00?


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3. In order to become a millionaire in 50 years, what is thesmallest amount you can invest to start with?

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4. Suppose you invest $25000.00 now, and a friend invests $2500.00five years from now. How many years sooner would you become amillionaire than your friend? Why is it possible for your answerto be more than five?

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5. How much money should your friend invest,if they want to become a millionaire at the same time you do?
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"Jogging"

 

Suppose you are working on a fitness program to train for a particular sport. As part of your daily routine, you will be jogging to develop your endurance. You plan to start by jogging a certain number of blocks, and increase your distance each day by adding a set number of blocks to your jog. We can use Excel to create a spreadsheet that will show how many blocks you will be running on any given day.

Open the file Jogging.

1. In the situation shown on this screen, you are planningto jog five blocks on the first day and increase the distanceyou jog by three blocks each day after the first. Explain whatis happening to the numbers in column B.

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What is the formula for cell B15? _________________

2. If you jogged 42 blocks today, how many days have you beenjogging? ___________

3. If you continue this pattern, will you ever jog exactly101 blocks? How do you know?
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4. Suppose you want to set a goal to be able to jog exactly 150blocks on day 30. Find as many possible "fitness programs"as you can find that will allow you to achieve this goal. In otherwords, what combinations of "beginning number of blocks jogged"and "number of blocks added daily" will allow you toreach 150 blocks (and not any larger ) on day 30.

 Beginning # of Blocks

 Blocks added daily