Bank of the West

In our financial algebra class our group decided to get information about the bank. We gather question that would help us understand more about finance that would benefit us once we leave high school. The bank that we contact to ask the branch manager was Bank of the West.

What is the best annual percentage that a person wants when they are compounding annually?

The answer that was given to us was that the higher the percentage the better it for the person that is investing because it will compound much faster. The reason for this is because the feds get together quarterly and what they do is they look at the result of the bank and if people are taking out there money at the same time the they raise the rates.

Will compounding annually change as the rate changes or will it always stay the same?

The rate that you is the one that you will have the reason for this is because of the contract that you have. For example if you have a rate of 5.7% for 20 years it will also compound at that rate even if the rate drops. It both benefit you and not at the same time because if the rate percentage drops then it does not affect you because of the contract, but if it increase then it will not benefit you.

When is a good time to start an IRA account?

According to the research that was done because this question was not asked , but its important that you start as soon as you could.

Conclusion

What I thought of this activity is that is that it was interesting because we got to talk about the bank and with someone that works with the bank. The thing that I enjoyed was that we made up the question and the fact that he was able to answer the question.