Cameron Lau
Calculations:
Stocks Up: Calculation
Year | Savings | Grand Total |
0 | 0 | 0 |
1 | 80000 x 1.075 = 86000 | 86000 + 10000 = 96000 |
2 | 96000 x 1.075 = 103200 | 103220 + 10000 = 113200 |
3 | 113200 x 1.075 = 121690 | 121690 + 10000 = 131690 |
Stocks Down: Calculation
Year | Savings | Grand Total |
0 | 0 | 0 |
1 | 80000 x .931 = 74480 | 84480 |
2 | 84480 x .931 = 78650.88 | 88650.88 |
3 | 88650.88 x .931 = 82533.96928 | 82533.96928 + 10000 = 92533.96928 |
Stocks 2 Up 1 Down: Calculation
Year | Savings | Grand Total |
0 | 0 | 0 |
1 | 80000 x 1.075 = 86000 | 876000 + 10000 = 96000 |
2 | 96000 x .931 = 89376 | 89376 + 10000 = 99376 |
3 | 99376 x 1.075 = 106829.2 | 106829.2 + 10000 =116829.2 |
Justification:
I chose option 3 (Stocks) because its a high risk high reward strategy that involves a little bit of luck, but if you can pull it off it is great in the long run. I included three different calculations depending on the situation: Stocks Up, Stocks Down, and Stocks 2 Up 1 Down. If you’re lucky and all three years end up being up you gain a little bit more money than you originally needed, but if you were to lose all three years, you would have a harder time achieving the goal in the three year time frame. But if one year were to fail, you would be a pinch away from the goal. Although Stocks are much riskier than the other two choices, In real life I think I would also choose stocks.
Collaboration:
My group was a bit awkward because it was like my group were two separate groups rather than one. We separated ourselves into boys and girls, but even so I think that we made it possible and were able to do our work efficiently rather than awkwardly talking to people that we aren’t comfortable talking to and wasting our time.
Core Competency Reflection:
Communication:
- I was able to understand my learning and be able to express it to my peers
- I can work with others to think about a similar goal
Personal/Social:
- I am able to advocate for myself whenever help is needed
- I’m kind to others and attempt to help others when asked for it
Thinking:
- I can analyze my findings and make use of them
- I can consider more than one way for solve equations before I proceed to choose one