Question

1) You plan to deposit $200 each month into an IRA earning 0.25% interest monthly. How much will you have in your account in 10 years?

2) You just graduated from college and landed your first "real" job, which pays $68,000 a year. In 9 years how much will you need to earn to maintain the same purchasing power if inflation is 0.75% per year?

3) Calculate the future value of $13,000 earning 9% for 35 years.

4) You have a child who will start college in 17 years, and you plan to set aside $1,000 a year for her college education during that period. You estimate that you will earn an annual interest rate of 8% on your investment. What amount can you expect to have available for your child when they start college?

5) Your interest rate is 6.05%. Convert this percentage to a decimal.

Answer 1

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