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8th Grade
Kay Started visiting colleges when she was only in the 8th grade. She didn't realize how expensive it was so she asked her mom if she could open up an savings account -
First Bank Account
Her mom took her to the bank and she opens a savings account and puts 200 dollars of her saved birthday money that she earned along the years -
Learns about interest
Her mom explains to her as long as she doesn't touch the money that's in her saves account it would increase by 15% because of inerest. -
Curious Kay
She is so curious to find out how much money she will have in 5 years, so she goes to the school the next day and ask her teacher for help. -
Teacher are the Real MVP
She goes and ask her math teacher and she gives her a formula A=Pe^rt but before Kay could ask what is stood for is was time for class to start. -
The Internet is Life
When school was over Kay ran all the way home to look up what the formula meant. Of course she was exhausted so she had to eat a snack first. -
Snack Time is Over
She ask her mom if she could us the computer and her mom agrees but after she does her homework! That day was the fastest she ever did homework. -
Finally the Answer maybe?
The internet tells her that A=Pe^rt means P is the starting amount, e is 2.71828 which is the base of natural logarithms, r is the interest rate expressed as a decimal, and t is time. -
Time to use that Good Ole Noggin
Kay knows all you have to do is use all the information her mom gave her so she knows P=200.00, r=15% or .15, t=5 years because that's when she'll graduate. A=Pe^rt=200e^.15*5. She uses her handy dandy calculator and the number she get is about 423.40. She was excited and thinks that's a lot of money, but doesn't realize that's only enough for books that she will barely even use. -
Fast Forward
It Kay's Graduation day and goes to the bank to go look at the bank account to add all he graduation money and her prediction was correct her account was at 423.40 and she added her graduation money to her saving. -
The End
I've hoped you've enjoy this little made up story now it's your turn to show of you skills on interest and make up a story.