 Research the highest interest rate (APY—annual percent yield) for 2-year and 5-year CDs.
Document the company's name, interest rate, and minimum investment. The minimum
investment must be less than or equal to $5,000.
The highest interest rate (APY) for a 2- year CD is 0.5000% from Tropical Financial Credit Union and has a
minimum investment of $500.
The highest interest rate (APY) for a 5- year CD is 1.2500% from Tropical Financial Credit Union and has a
minimum investment of $500.
 Create the functions that represent the 2-year and 5-year CDs with your $5,000 investment.
Use these functions to determine the amount you will be paid when the CD matures (the length
of time for the specific CD). Show your work.
2- Year CD
F(x) = 500(0.5000) x.
Total amount: 1750
5- year CD
F(x) = 500(1.2500) x.
Total amount: 1525.88
 an investor comes to your office. He says that if you give him the $5,000 he will add on an
additional $50 each year to what he owes you. Create the function for this investor's plan.
f(x) = 5,000 + 50x
 Create a table showing the value of the two CD's and the investor's plan for 5 years.
Year 1 Year 2 Year 3 Year 4 Year 5
2750
2-year CD 750 1250 1750 2250
5-year CD 625 781.25 976.56 1220.70 1525.88
5250
Investor 5050 5100 5150 5200
 Explain to your friends how to prove that the investor's plan is a linear function and the CDs
are exponential functions. Use complete sentences.
The investor's plan is linear because the function increases at a steady rate (50). The CD's are
exponential functions because they are both multiplied by a common ratio (0.5000 {2-year CD} and
1.2500 {5-year CD}.
 Find the average rate of change for the investor's plan and the 5-year CD between years 2 and
3, and between years 3 and 5. Explain what this shows in complete sentences.
 One of your friends suggests another 5-year option that gives interest based on the function
k(x) = 5000(1.02)x. Explain what the 1.02 represents in terms of the CD and if it is a better plan
than the 5-year CD you found. Use complete sentences.
I think that we should use the new CD because even though we cannot collect our money until the CD
has completed, we will have more money as a whole. The 2-year CD would give us money faster, but
would not give us as much money. But the new 5-year CD will give us quite a bit more money