Personal Finance

How much should you deposit at the end of each month into an investment account that pays

6.5 % compounded monthly to have

$4 million when you retire in 37 ​years? ​(Round up to the nearest​ dollar.)

How much of the $4 million comes from​ earnings?

​(Use the answer from the previous step. Round to the nearest dollar as​ needed.)

You would like to have

​$79,000

available in 15 years. There are two options. Account A has a rate of 7.5​%

compounded once a year. Account B has a rate of 7​%

compounded daily. Which account should you pick? How much would you have to deposit? Assume 365

days in a year.

Enter your answer as so: C - 10,000

Use the appropriate formula to find the value of the annuity.

Find the interest.

Periodic Deposit

​$30 at the end of each month

with rate of 3% compounded monthly

over 35 years

(enter the interest earned on this investment)

Find the accumulated value of an investment of $20,000 for 6 years at an interest rate of 1.15 %

if the money is compounded continuously.

(round to the nearest cent as needed)

A bank offers a CD that pays a simple interest rate of 3.5​%.

How much must you put in this CD now in order to have $3000

for a graduation trip in 3 ​years?
​(Round up to the nearest​ cent.)

Suppose that you decide to buy a car for $29,635​,

including taxes and license fees. You saved

$ 6000

for a down payment and can get a four​-year car loan at 6.86%

Use PMT formula to find the monthly payment and the total interest for the loan.
​(Round to the nearest cent as​ needed.)