**Financial Report Worksheet**

**Directions: **Complete the financial report worksheet to help you with your calculations to create the APA report.

1. Go to your financial institution’s website or a local financial institution’s website and find the interest rate and compounding frequency (monthly, quarterly, annually, and so on) for a savings account. Record that here:

2. Use the compound interest formula: where *r* is the interest rate **as a decimal**, *n* is the number of times it is compounded in the time frame, *t* is the amount of time, and *P* is the starting value. Calculate your balance if you invest $1,000 for 1 year.

3. Using the compound interest formula, calculate your balance if you invest $1,000 for 5 years.

4. Now select a new compounding period (monthly, quarterly, annually, and so on) and redo your calculations from number 2 & 3, using the same interest rate.

5.Now select a new interest rate from another financial institution that is different than your starting one. Redo your calculations from numbers 2 & 3 with the new rate but keeping the same compounding frequency that you used in 2 & 3.

6. What did you learn about comparing the compounding frequency that interest is compounded?

7.What did you learn about comparing the interest rate?

8. Is it better to have a slightly higher rate or have interest compounded more often?