Present Value of Investments

When his daughter Alisa was born, Mike began saving for her wedding. He wanted to have saved about $30,000 by the end of 20 years. How much should Mike deposit into an account that yields 3% interest compounded annually in order to have that amount? Round to the nearest cent.

Answer explanation

$16,610.27

Martina will be attending 4 years of undergraduate school and four more years of graduate school. She wants to have $200,000 in her savings account when she graduates in 8 years. How much must she deposit in an account now at a 2.6% interest rate that compounds monthly to meet her goal? Round your answer to the nearest dollar.

Answer explanation

$162,478

Kate wants to install an inground pool in fi ve years. She estimates the cost will be $50,000. How much should she deposit monthly into an account that pays 3% interest compounded monthly in order to have enough money to pay for the pool in 5 years? Round to the nearest cent.

Answer explanation

$773.43

Geri wants $30,000 at the end of five years in order to pay for new siding on her house. If her bank pays 2.2% interest compounded annually, how much does she have to deposit each year in order to have that amount? Round to the nearest cent.

Answer explanation

$5,741.74

Uncle Al wants to open an account for his nieces and nephews that he hopes will have $100,000 in it after 25 years. How much should he deposit now into an account that yields 1.75% interest compounded monthly so he can be assured of meeting that goal amount? Round to the nearest cent.

Answer explanation

$64,585.43

Althea will need $30,000 for her nursing school tuition in 18 months. She has a bank account that pays 2.45% interest compounded monthly. How much does she have to put in each month to have enough money for the tuition? Round to the nearest cent.

Answer explanation

$1,637.93

Tags

CCSS.8.EE.C.7B

Art opened an account online that pays 2.8% interest compounded monthly. He has a goal of saving $20,000 by the end of four years. How much will he need to deposit each month? Round to the nearest cent.

Answer explanation

$394.25

Anthony wants to repay the loan his parents gave him in three years. How much does he need to deposit into an account semi-annually that pays 3.25% interest twice a year in order to have $35,000 to repay the loan? Round to the nearest cent.

Answer explanation

$5,600.81

Lorna needs $40,000 for a down payment when she buys her boat in 4 years. How much does she need to deposit into an account that pays 4.15% interest compounded quarterly in order to meet her goal? Round to the nearest cent.

Answer explanation

$33,910.84

Sylvia wants to go on a cruise around the world in 5 years. If she puts $50 into an account each week that pays 2.25% interest compounded weekly, how much will she have at the end of the five-year period? Round to the nearest cent.

Answer explanation

$13,756.31