• 1)Write down the Savings Plan Formula and what each of the variables in the formula stands for:
  • 2)What is the purpose of the savings plan formula?
  • 3)What is the difference between APR and APY and where would each be applied?
  • 4)Let’s say that you invest $10,000 for 5 years and I tell you that over that time, the percentage change in your investment was 40%, while on a yearly basis, your investment grew by 7.5%.

Which number is the total return and which the annual return?

Give a brief definition of each.


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