Birthday Ca$$hhh

Birthday Ca$$hhh
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  • Birthday Ca$$hhh By: Shivani Patel
  • Your dad and I have decided to give you $100 for your birthday!
  • Hmmm...$100 is A LOT of money, I can buy SO MUCH with it!!! But LATELY, I have been wishing for a trip to France and maybe if I save up right now, by the time I'm 50 and retired, I'll be able to afford a trip to France!! I should ask dad though.
  • For his 10th birthday, Edward receives $100 in gift money and decides to invest it into a savings account so that he is able to save up for a future trip to France. He tells his parents his idea and they agree.
  • Happy Birthday Edward!!! You're 10 years old now!!
  • The next day, Edward and his dad go to the bank and open an account for Edward, in which they invest the $100.
  • Now you can buy anything you want sweetie!
  • Hi, we would like to open a savings account for my 10 year old son. Would you be able to help us?
  • Sure sir! We can get your son a savings account, that will pay 3% annually and we'll set your maturity date 40 years from now when he is 50!
  • Spend it wisely son!
  • 20 years later..... Edward is now 30 years old and he goes to the bank again unhappy with his account and wants to withdraw his money.
  • Hmmm...$100 is A LOT of money, I can buy SO MUCH with it!!! But LATELY, I have been wishing for a trip to France and maybe if I save up right now, by the time I'm 50 and retired, I'll be able to afford a trip to France!! I should ask dad though.
  • Hi i would like to withdraw my money from the account. It has been 20 years since i invested and feel as if it hs hardly earned any interest income.
  • Sir i would recommend not because although by a small value, the money in your account has been accelerating in value. We know this because the instantaneous rate of change for your account $5.
  • Edward tells his parents his idea
  • 20 more years later.....Edward is now 50 years and retired. His account reached its maturity date and he is here to withdraw the money.
  • OH MY GOD honey!! That is an amazing idea! How smart of you! We'll go tomorrow itself to get you a savings account !
  • I am glad I did not withdraw my money 20 years because now, surprisingly, my account has enough money for me to go on a trip to France!!! YAYYY!!!
  • I sure am glad sir! I told you not to withdraw as I noticed that on average, your account had been earning $4.16 per year and now you will be able to enjoy your trip!!!
  • THE END!!!!!
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