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One can never consent to creep when one feels an impulse to soar...Helen A. Keller

 



The Compound Interest Question


Helen Keller Middle School's New Haven Math Trail

Walk south on College Street (away from Elm) and enter Old Campus through Phelps Gate, which is located about halfway down the block. As you enter the Old Campus, head off to the left and look for the statue of Nathan Hale in front of Connecticut Hall.

Connecticut Hall is the oldest building on the Yale campus. Its construction began in 1750 and was completed in 1752. One of Yale's many famous graduates, Nathan Hale (Class of 1773), was a resident of Connecticut Hall during his years at Yale.

a. Examine the statue of Nathan Hale, which was created in 1914. A copy of this statue stands in front of the CIA Headquarters building in McLean, Virginia. Hale was one of this country's first intelligence officers, serving as a spy during the American Revolution. He is famous for the quote, "I regret that I have but one life to give for my country." Examine the inscription on the base of the statue. What does it say?
b. Nathan Hale was captured by the British during the American Revolution and hanged as a spy. In what year did he die?
c. Suppose that Nathan Hale had been able to deposit $1 in a bank account just before he died. If that account had earned 4% interest compounded annually, how much would be in the account today?
Use the formula A = P(1 + i)^n where:
A = Amount of money in the account
P = Principal (the amount of the original deposit)
i = Interest rate (written as a decimal)
n = Number of years the money is in the account
d. Another famous Yale graduate was Joel Barlow (Class of 1778). After leaving Yale, Barlow was a writer, poet and diplomat, appointed by President James Monroe as the American minister to France. He died in Poland in 1812. If Barlow had been able to deposit a dollar just before he died in an account paying 4% interest compounded annually, how much would be in the account today? Use the same formula you used above.
e. Use your graphing calculator to figure out the year in which Barlow's account would have grown to $200.

  Write the equations you entered:

Y1 = ______________________
Y2 = ______________________
What window did you use?

XMIN = ________
XMAX = ________
YMIN = ________
YMAX = ________

Sketch the graphs in the space provided.

In what year had the account grown to $200?




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