How much should you deposit at the end of each month

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Q1. Suppose that you want to have a $90,000 retirement fund after 35 years. How much will you need to deposit now if you can obtain an APR of 14.2%, compounded daily? Assume that no additional deposits are to be made to the account.

a. $624.88

b. $625.49

c. $642.38

d. $862.8

Q2. Suppose that you have 15 months in which to save $1800 for a vacation cruise. If you can earn an APR of 3.7%, compounded monthly, how much should you deposit at the end of each month?

a. $117.43

b. $121.78

c. $124.84

d. $132.47

Q3. Your savings account pays an APR of 4.3%, compounded annually. If you deposit $500 at the end of each year for 8 years, what will be the accumulated balance in the account?

a. $3325.06

b. $3672.18

c. $4656.65

d. $5023.75

Q4. Suppose you want your daughter's college fund to contain $125,000 after 14 years. If you can get an APR of 7.8%, compounded monthly, how much should you deposit at the end of each month?

a. $398.54

b. $406.64

c. $412.50

d. $476.83

Q5. Suppose that you invest $18,000 in an account that earns interest at an APR of 3.7%, compounded annually. Determine the accumulated balance after 6 years.

a. $22,474.03

b. $22,466.61

c. $22,451.36

d. $22,384.38

Reference no: EM132558508

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