5. Start saving for retirement immediately! Even a modest amount will add up in a hurry. Jay decides to follow this advice and puts away 1% of his annual salary of P500,000 per year. This equates to P5,000 on his 21st birthday, and his salary will increase by 2% (on average) every year thereafter until Jay turns 60 years old. What is the worth of Jay's account at age 60 when the annual interest rate of his account is 1% per year?

You deposit $200 each month into an account earning 5% interest compounded monthly. a) How much will you have in the account in 15 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $

John is a very cost-conscious investor. His rule of thumb is that it costs $200 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $200 each year over the life of the car. John is now considering the purchase of a five-year old car with 50,000 miles on it for $9,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for seven years? John's interest rate is 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)

Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that ​$2,600 is set aside each year and invested in a savings account that pays 8​% interest per​ year, compounded continuously. a. Determine the accumulated savings in this account at the end of 23 years. b. In Part​ (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 23. The annuity will extend from the EOY 24 to the EOY 32. What is the value of this annuity if the interest rate and compounding frequency in Part​ (a) do not​ change?