Mr. Izzo's Math Classes - Mt. Sinai High School



Scenario #1Jim has $35,000 in a 401k account that mimics the Dow Jones when the Dow Jones average is 16,400. Jim watches the Dow begin to fall over the course of two months. Jim decides to convert his 401k stocks to a cash option when the Dow Jones falls to 15,000. Find its cash value at this pointAfter six months the Dow Jones hits a bottom of 13,500. Jim decides to re-convert his cash back to stocks at a Dow Jones average of 14,000. Find the worth of Jim’s 401k three years after the original recession when the Dow Jones average is back up to 17,200Scenario #2Mary has $90,000 in a 401k account that mimics the S&P 500 when its average is 1,400. Mary watches the S&P begin to fall over the course of eight months. Mary waits too long and decides to convert her 401k stocks to a cash option when the S&P falls to bottom at 831. Find its cash value at this point.After the S&P 500 begins to rebound, Mary finally feels safe enough to go back into stocks when the S&P average is back up to 1100.Find the worth of Mary’s 401k three years after the original recession when the S & P 500 average is back up to 1,400 ................
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