Download Retirement Plan Options Task

Name _______________________
Block_________________
Date ______________
Retirement Plan Options Task
Upon taking his first job, Stuart Martin is given one of the following options for his retirement plan:
Option A: $ 0.05 the first year, $ 0.15 the second year, $ 0. 45 the third year. This pattern continues.
Option B: $ 10 the first year, $ 20 the second year, $ 40 the third year. This pattern continues.
Option C: $ 100,000 the first year, $ 200,000 the second year, $ 300,000 the third year. This pattern continues.
Your job is to give advice which option is best for the SHORT TERM ( 3-5 years) and LONG TERM (10, 15, 20 years).
Include the following for EACH OPTION:
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



Table for EACH OPTION
Linear or Exponential? For EACH OPTION
Explicit equation for EACH OPTION
Recursive equation for EACH OPTION
ONE CONCLUSION (SUMMARY) for the whole task –
WHICH OPTION IS BEST FOR THE SHORT TERM? WHY? (Give examples using math)
WHICH OPTION IS BEST FOR THE LONG TERM? WHY? (Give examples using math)
Option A: LINEAR/EXPONENTIAL?
Option B: LINEAR/EXPONENTIAL?
Option C: LINEAR/EXPONENTIAL?
X
X
X
Y
Y
Y
1) EXPLICIT EQUATIONS (use your graphic organizer)
Option A
__________________________
Option B
____________________________
Option C
_____________________________
1) RECURSIVE EQUATIONS (use your graphic organizer)
Option A
__________________________
Option B
____________________________
Option C
_____________________________
Name _______________________
Block_________________
Date ______________
2) Let us investigate which option is best for the long term?
Which formula is best for this purpose: EXPLICIT OR RECURSIVE? _______________________
Option A
X
y
Option B
X
Option C
y
X
10
10
10
15
15
15
20
20
20
y
3) Conclusion:
Dear Mr. Stuart,
Having investigates the three options for the retirement plan, I have concluded the following:
Option ________ is best for the SHORT TERM because______________________________________________________
_________________________________________________________________________________________________
For example, by year 4, ______________________________________________________________________________
_________________________________________________________________________________________________
Option ________ is best for the LONG TERM because_______________________________________________________
_________________________________________________________________________________________________
For example, by year 20, _____________________________________________________________________________
_________________________________________________________________________________________________
Should you have any further questions about the above described issues, please do not hesitate to contact me at:
_________________________. The best time to contact me is __________________. I have enjoyed working
with you on this project. I will be happy to conduct business with you in the future.
Looking forward to cooperating with you,
Sincerely,
_____________________________.