Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the price of the house will be $1,500,000 by then. She saves her money into an account paying 5.5% effectively. At the beginning of this year, she deposited $100,000.  She also plans to deposit $200,000 at the beginning of the second year and $150,000 at the beginning of each succeeding years. How much more will she need at the end of six years in order to make the purchase?

Tomas wants to save $1,200 a year in a manner that maximizes his savings. To d O Deposit $300 into his account at the end of each quarter. Deposit $1,200 into his savings account on the last day of each year. Treat his $100 monthly savings deposits as an annuity due. Treat his $100 monthly savings deposits as an ordinary annuity. Deposit $600 into his account at the end of every six month period.

On January 1, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in an investment account for you. On the basis of a budget, you estimate that the trip currently would cost $15,000. Being the generous and sweet lady she is, your grandmother decided to deposit $3,500 in the fund at the end of each of the next four years, starting on December 31, 2021. The account will earn 6 percent annual Interest, which will be added to the account at each year-end. (Future Value of $1. Present Value of $1. Future Value Annulty of $1. Present Value Annulty of $1, Financial Calculator) (Use tables, Excel, or a financial calculator.) Required: 1. How much money will you have for the trip at the end of year 4 (1.e., after four deposits)? 2. What is the total amount of Interest earned over the four years? 3. How much Interest revenue did the fund earn in each of the four years, starting in 2021? Complete this…

Adele is planning for retirement. She would like to have $75,000 in her hand at the beginning of her first year of retirement at age 65 to live on for the year. She estimates that the amount will have to grow by 6% every year to keep up with inflation. What APR (nominal rate per year) should her retirement account earn if it is compounded continuously? She plans to deposit $21,000 on her 40th birthday and plans to keep increasing the deposits by 6% every year and till her 64th birthday. She estimates her life expectancy to be 85, meaning she would like to have the last retirement payment on her 85th birthday.