Algebra 1 Common Core Student Edition, Grade 8-9

IPP Common Core Performance Task

Investing Prize M oney

Emilio wants to invest $15,820 that he has just received as a prize from a contest

he entered. He researches certificates of deposit (CDs) at two different banks. The

details for his two best options are in the table below. Both CDs earn compound

interest, which you will work with in Lesson 7-7. When interest is compounded, it is

added to the account’s principal to become part of the money that earns interest.

k CD Le n g t h

Annual

In t erest Rate

Fr e q u e n c y o f

Co m p o u n d i n g

Ban k W est 6 years 3.8% Quart erly

Fi r st Ban k 5 years 4.3 % M ont hly

Task D escr i p t i o n

Determine which investment will earn Emilio more interest. How much more

interest will he earn with that investment?

Co n n ect i n g t he Task t o t he M at h Pr act i ces pr a ctIces

As you complete the task, you’ll apply several Standards for Mathematical

Practice.

• You'll find the value of a compound interest account after one year. (MP 1)


• You'll write algebraic expressions that will help you understand a formula for
  the value of a compound interest account. (MP 7)


• You’ll use a formula to model Emilio's investment choices. (MP 4)

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