Reference no: EM132032502

1 a. $3,500 deposited today into an account earning 4% compounded annually will compound into what value in eight years? Round to the nearest dollar: enter your answer without commas or dollar signs.

b. Ronnie wants to buy a car upon graduating from college. Ronnie's grandmother has agreed to make deposits into an account at the beginning of each of the next five years in order to give this car as a graduation gift. Ronnie plans to graduate at the end of five years from today, and Ronnie's grandmother is going to make the deposits into an account earning 3%, with the first deposit made today. What deposit amount will be necessary to provide Ronnie with $50,000 to buy a car upon graduation? Round to the nearest dollar: enter your answer without using commas or dollar signs.

c. Sydney just won a lottery that pays $25,000 per year at the end of each of the next 20 years. Sydney has been offered a single payment today in place of the annual lottery payments. What is the minimum amount Sydney would accept if s/he can earn 2% by depositing the money into an account? Round to the nearest dollar: enter your answer without commas or dollar signs

d. Leslie would like to have $1,000,000 in her retirement account before she retires. She plans on making annual deposits of $10,000 into her IRA beginning today. If her IRA earns a return of 6% per year, how many years from today will Leslie be able to retire? Round your answer UP to the next whole year.

e. Johnny plans on depositing $8,000 into an account earning 3% per year at the end of each of the next 15 years. How much will be in the account at the end of that time period? Round to the nearest dollar: enter your answer without using commas or dollar signs.

f. Randy has $4,500 today and will need $6,300 at the end of five years from today. At what rate would Randy need to deposit the $4,500 today in order to have $6,300 five years from today? Round to the nearest whole percent: enter your answer as a whole number without a percent sign

g. Linda is buying a car for $35,000. She is financing the purchase with a 60 month loan. The annual percentage rate on the loan is 4%. What is her monthly payment if she will begin making payments one month from now? Round to the nearest dollar: enter your answer without commas or dollar signs.

h. Eddie deposits $1,200 into an account earning an annual rate of 4%, compounded semi-annually. How much will be in the account at the end of five years from today? Round to the nearest dollar. Enter your answer without using commas or dollar signs.

i. Mona will need $40,000 at the end of four years from today. How much will she need to deposit into an account earning an annual rate of 4%, compounded quarterly, in order to meet her goal? Round to the nearest dollar. Enter your answer without commas or dollar signs.