5-8 Known: 1. Present value 2. Future value 3. Routine deposit/withdrawalDetermine: 4. Present value 5. Future value 6. Routine deposit/withdrawalInterest added: 7. Once 8. PeriodicallyMiscellaneous: 9. One time deposit/withdrawalWhich set of conditions above apply to the following scenario:Ten months ago Marie started making $200 monthly car payments. Based on 6% annualrate of interest (compounded monthly), what is the value of Marie's payments today?Identify the conditions:1. A = P(1 + in) 2. P=3. A=P(1+i)n 4. P=[(1 + i)n − 1]5.A =R [ { 1 + 1A(1 + in)6. R=A(1+i)nAi(1+i)n-17. A =R [1-(1+i)n]8. R=Ai1-(1+i)nMatch the formulas to the conditions below:Formula 6:Formula 5:A: Routine deposit/withdrawal is knownInterest added periodicallyDetermine future valueB: Present value is knownInterest added periodicallyDetermine routine deposit/withdrawalC: Future value is knownOne time deposit/withdrawalInterest added onceDetermine present valueD: Present value is knownOne time deposit/withdrawalInterest added periodicallyDetermine future valueFormula 8:E. Present value is knownOne time deposit/withdrawalInterest added onceDetermine future valueFormula 7:F: Future value is knownInterest added periodicallyDetermine routine deposit/withdrawalG: Routine deposit/withdrawal is knownInterest added periodicallyDetermine present valueH: Future value is knownOne time deposit/withdrawalInterest added periodicallyDetermine present value 1. Starting one month after retiring, Julie plans to withdraw $2000 monthly from her IRA for thenext 20 years. Interest in the amount of 1% of the remaining balance is added monthly to theaccount. How much should Julie have in her account upon retiring?Formula =i=n =Amt. =2. A year after a subdivision was built (built in 1995), a constant number of people startedmoving in per year. Births started occurring after one year of residency. Number of births eachyear was the product of current population and 5% annual birth rate. People moved in andbirths occurred on the same day each year. Population in 2000 was 100; how many peoplemoved in each year?Formula =Amt. =3. For 20 years Bear deposited monthly into a mutual fund that yielded 12% annual rate ofinterest (compounded monthly). A one-time deposit of $200,000 (deposited 20 years ago) hasthe same result (based on 12% annual rate of interest compounded monthly); how much wasdeposited monthly?Formula =i=i=Amt. =4. Ten months ago Marie started making $200 monthly car payments. Based on 6% annualrate of interest (compounded monthly), what is the value of Marie's payments today?Formula =n =Amt. =1. A = P(1 + in) 2. P=i=5. Jay has $1,000,000 in his IRA one month before taking his first monthly withdrawal. Interestin the amount of 1% of the remaining balance is added monthly to the account. How much canJay withdraw monthly resulting in a zero balance at the end of 20 years?Formula =i=n =Amt. =3. A=P(1 + i)n 4. P=5. A=R[(1 + i)ª − 1]Ai(1 + i)n-17. A =R [¹-(1 + i)-n]I8. R=6. R=Step 1:Step 2:Step 3:Ai1−(1 + i)-nn =A(1 + in)A(1 + i)nn =Suppose you are given the following investmentscenario:Jim deposits monthly into an account thatunfortunately depreciatesat a monthly rate of 0.2 % (compounded monthly).The value of Jim'saccount after 4 years is $3000; how much did Jimdeposit monthly?What are your 3-step strategies (designed to reducethe number of formulas by one-half for each step)when identifying the appropriate formula/model?Also, identify the formulas for each step. Do not solve.

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Future value (FV) is crucial to investors and financial planners because they use it to predict how…