Present Value

Jeff and Amy know that in 6 years they are going to have to come up with $20,000 for the first year of their son's college. How much should they deposit in their account that yields 5% interest, compounded annually, in order to have that amount. Round to the nearest $1,000 dollars.

• 17,000

• 16,000

• 15,000

• 14,000

Jeff and Amy know that in 8 years they are going to have to come up with $25,000 for a new car How much should they deposit in their account that yields 4% interest, compounded annually, in order to have that amount. Round to the nearest $1,000 dollars.

• 19,000

• 18,000

• 17,000

• 16,000

Laura and Mike know that in 10 years they are going to have to come up with $15,000 for a deposit on a home. How much should they deposit in their account that yields 6% interest, compounded monthly, in order to have that amount. Round to the nearest $1,000 dollars.

• 8,000

• 9,000

• 10,000

• 11,000

Jessie and Leah know that in 3 years they are going to have to come up with $9,000 to pay off their credit card. How much should they deposit in their account that yields 3% interest, compounded semimonthly, in order to have that amount. Round to the nearest $1,000 dollars.

• 7,000

• 10,000

• 9,000

• 8,000

Josh and Brooke know that in 5 years they are going to have to come up with $18,000 for the first year of their son's college. How much should they deposit in their account that yields 3 1/4% interest, compounded monthly, in order to have that amount. Round to the nearest $1,000 dollars.

• 13,000

• 14,000

• 15,000

• 16,000

Macie just graduated from college. She wants $100,000 in her savings account after 10 years. How much should she deposit in her account now at a 3.8% interest rate, compounded daily in order to meet that goal. Round to the nearest dollar.

• 76,950

• 84,900

• 68,388

• 60,235

Jenson just graduated from technical school. He wants $15,000 in his savings account after 20 years. How much should he deposit in her account now at a 3.25% interest rate, compounded monthly in order to meet that goal. Round to the nearest dollar.

• 7,653

• 7,654

• 7,837

• 7,838

Alex just graduated from college. She wants $200,000 in her savings account after 10 years. How much should she deposit in her account now at a 3.8% interest rate, compounded daily in order to meet that goal. Round to the nearest dollar.

• 136,776

• 136,775

• 136,774

• 136,773

Haley just graduated from nursing school. She wants $300,000 in her savings account after 20 years. How much should she deposit in her account now at a 3 1/2% interest rate, compounded monthly in order to meet that goal. Round to the nearest dollar.

• 14,911

• 14,912

• 15,908

• 14,913

Nisha just graduated from college. She wants $120,000 in her savings account after 10 years. How much should she deposit in her account now at a 3.28% interest rate, compounded daily in order to meet that goal. Round to the nearest dollar.

• 87,098

• 88,091

• 88,405

• 86,445