Part1

Theimpactoftheinitialinvestmenthadaminorimpactonthetimeittookforthe
investmenttodoubleinvalue.Asshownbythetables,alltheinvestments($1000
5000)alltookaround5yearstodoubleinvalue,exceptthe$1000investment,which
took6yearstodouble.Ithinkthatthisisbecausealltheinvestmentsweremultipliedby
thesameinterestratewhichledtosimilargrowthrates.(
1)
Keepinmindthatthisis
compoundinterestandnotsimple,whichshouldhavehadanimpactontheinvestment
growth.Ithinkthatbecausetheinvestmentsweresuchasmallvalue,thecompounded
interestgrowthforoneinvestmentwasthesameastheotherinvestments.(
2)
Asshown
inthespreadsheet,eveniftheinterestgainedattheendofyearwasdifferent,the
growthratewasstillsimilar,withallbutoneinvestmentdoublingthemselveswithin6
years,andallinvestmentsdoublingthemselveswithin10years.(
3
)

Part2
Theimpactofchangingtheinterestrateshadabiggerimpactthanchangingthe
initialinvestment.Ichangedtheinterestrate,changingit1%foreachlevel,witharange
of5(1%5%).Inoticedbychangingtheinterestrate,foreach1%increase,ittookless
time(
4
)fortheinitialinvestment($1000)todoubleitself.Ithinkthiswasbecauseeach
timeIincreasedtheinterestrate,theamountofinterestgainedwaslarger,asshownin
table(refertospreadsheet,Part2).Theinterestgainedwitha1%interestrateand
interestwitha5%interestratehadahugedifferenceintheirfirstyear($200difference)
andthatdifferenceinthefifthyeargrewto$1,543difference.Evenwiththedifferent
interestrates,allbutoneinvestmentdoubleditselfwithin10years.

Conclusion(
5
)
Toconclude,evenwiththedifferentinitialinvestmentsanddifferentinterestrates
Iexplored,theyallmostlyshowedsimilartrends,withall(bothdifferentinitial
investmentsanddifferentinterestrates)but2investments($1000with5%consistent
interestrate(Part1)and$1000with1%changinginterestrate(Part2))doubling
themselveswithin10years.Thisshowedthat,withtheexceptionofthetwo
aforementionedinvestments,thattheotherinvestmentswereverysuccessful.(
6
)

Extension
Asshowninthetables(refertospreadsheet),theinitialinvestmentwaschanged,
startingfrom$10,000andincreasingitby$10,000foreachlevel,with5levels($10,000
$50,000)whiletheinterestratewasaconsistent5%.Alltheinvestmentsalltook
around67yearstotriplethemselves,andaround10yearstoachieve10timesthe
originalamount,evenwithaconstantinterestrate.Ithinkthiswasbecauseasthe

valuesincreased,theamountofinterestgainedwasalotmorethanthepreviousvalue,
asIwasincreasingitby$10,000eachtime,whichledtoalargerturnout.

1
Theyshouldtakethesameamountoftime.Ithinkyou'renotinterpretingyourtablecorrectly.Also,what
interestratewereyouusing?Investmentsdon'talwaystake5yearstodoubleinvalue.Itdependsonyour
interestrate.
2
Nicepoint.
3
Soyouthinkyourresultswouldchangeforalargervalue?Tryit!
4
Howmuchlesstime?Graphinterestratevsdoublingtime.
5
T
hisconclusionisveryconfusing.
6
Thetaskisn'taskingyoutojudgewhetherornotaninvestmentissuccessfulornot.

FinalCriterionBGrade:4