Question

A. Jamie Lee needs to save a total of $7.000 in order to get started in her cupcake care venture. She is presently depositing $1,400 a Wear in a regular savings account Calculate the future value of these deposits B. Assuming that she leaves her emergency fund of $1,400 untouched, how much will her emergency fund be worth? c! What Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount she would need now woensure that she had $7.000 when she wanted to open the cupcake cafe? DAS Jamie Lee is planning ahead for operating the cupcake cafe, she calculates that she will need $25,000 per year in salary What the value of five years of salary when the cupcake cafe opens? (Assume that she will take the salary as a one-time payment each year) Use the table below and Exhibit 1-A, Exhibit 1-B. Exhibit and Exhibit 1:n to calculate the balances of the Information provided above. Assume that the time period for each scenario is 5 years, and the interest rate is 396 A. Future Value of a Series of Deposits Future Value Future Value 0.00 B. Future Value of a Single Amount Regular deposit amount equals Future value S 000 Present Value of a Single Amount Future amount desired D. Present Value of a ne of Deposits RHOVI Rant to withdrawn Present value

Answer 1

A: Future value of a series of Deposits Regular Deposit Amount times $ 1,400.00 Future Value of Annuity Factor 5.468410 equals Future Value Amount 7.655 77 $ B: Future Valur of Single Amount Current Amount Future value factor times equals Future Value Amount 1,622.98 $ 1,400.00 1.159274 $ C: Present Valur of a single amount Future Amount Desired times $ 7,000.00 Present Value Factor 0.862609 equals Present Value Amount 6,038.26 X $ D: Present Value of Series of Deposit Regular Amount to be withdrawn times $ 25,000.00 Present Value of Annuity Factor 4.579707 equals Present Value Amount 1,14,492.68 $

Notes:

1. As the factors table is not provided, I have calculated factors and rounded off upto 6 decimal places. If your factors differ i.e. rounded off upto 3 or 4 decimal places, then use the factor tables provided in your question.
2. Be careful while reading figures (with commas).