Investing for The Future
You are the owner of XYZ, Inc. You had a record year, and you want to
invest the extra capital. After doing some research, you will write a
project report detailing your financial considerations and findings to
your business partners on your projected investment plan.
First, do some research at your local bank, through your retirement
investment firm, or by reading articles on stock analysis. This can be
done virtually. Investigate the financial terms of several investment
options. What interest rate is being offered? Is the interest
compounded daily, monthly, or yearly? Do your best to find out the
financial details for at least two different investment options. You will
be citing your references in APA style.
Second, do some investment calculations. You may use a scientific
calculator. For your investment:
•
Choose an amount between $5,000 and $500,000 of extra capital
for principal, P, the initial amount of money to invest.
Choose between 5 and 30 years for t, the number of years you
will let the account grow.
Based on your research findings:
•
Use the rate for r, the investment growth rate per year.
If using the compound interest formula, use the appropriate value
for n depending on if the compounding is performed on a daily,
monthly, or yearly basis. If compounding is continuous, then you
will use a different formula called the continuous compounding
formula.
Compound Interest:
Interest:
Continuously Compounding
Third, reflect on your calculations and present your financial guidance
in a project report. You will make two different plans based on an
aggressive and conservative forecast of the market. (You may also make
a combination of the two rates, allocating different investment amounts
that total your initial capital.) Your project report should contain the
following:
•
‰ntroduction: One paragraph describing how investment could be
beneficial to the company.
Three body paragraphs addressing each of the following:
o Explain how compound interest works in your own words.
o Explain the two different forecasting plans with pros and
cons for each.
o Present your calculations for each plan. Be sure to state the
formula and outputs.
Conclusion: One paragraph summarizing your financial
considerations and findings and their significance to the company.
Project Report Guide
Professional written reports should have an introduction, body, and
conclusion. A good way to plan this project report is to write an
introduction to the report. Next, write at least three body paragraphs
and address each of the points listed above. End your report with a
conclusion paragraph tying all of your ideas together. The report should
be at least five paragraphs in length. A title page and reference page are
also required.
You are expected to use at least one outside source for this report. Cite
outside sources in proper APA format.

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