You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $5,000 at the end of the first year, and you anticipate that your annual savings will increase by 15% annually thereafter. Your expected annual return is 11%. How much will you have for a down payment at the end of Year 3? Do not round intermediate calculations. Round your answer to the nearest cent.

You are considering two savings options. Both options offer a rate of return of 8.2 percent. The first option is to save $1,500, $1,500, and $2,000 at the end of each year for the next three years, respectively. The other option is to save one lump sum amount today. You want to have the same balance in your savings account at the end of the three years, regardless of the savings method you select. If you select the lump sum method, how much do you need to save today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You are saving for a new house. You place $55,000 into an investment account each year for five years. How much will you have after five years if the account earns (a) 3%, (b) 5%, or (c) 7% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Annuity Payment $ 55,000 55,000 55,000 > Answer is complete but not entirely correct. Annual Rate 3% 5% 7% Interest Compounded Annually Annually Annually Period Invested 5 years 5 years 5 years Future Value of Annuity $ 63,760.07 X 70,195.49 X 77,140.35 x

You plan to invest $9.9 into an investment that you hope will earn a return of 12.01%.  You will withdraw your money in 5 years.  How much will you withdraw?   Answer:

Solve each of the following questions using both pricing formulas and Excel.  3. You plan to retire in 35 years. At the end of each year, you plan on saving $15,000, and your bank pays you 2% annual interest. How much will you have saved by the time you retire?