Examine each of the following situations, labeled I, II, and III Identify which of the three cases below applies Do not solve the problems I Future value of a single deposit investment II Future value of a periodic deposit investment III Present value of a periodic deposit investment a You want to ...

a You want to buy a car when you graduate so you are looking ...

Examine each of the following situations, labeled I, II, and III. Identify which of the three cases

Question:

Examine each of the following situations, labeled I, II, and III. Identify which of the three cases below applies. Do not solve the problems.
I. of a single deposit investment
II. of a periodic deposit investment
III. Present value of a periodic deposit investment
a. You want to save for a new car that you will buy when you graduate college in 4 years. How much will you be able to afford if you deposit $1,000 per quarter in an account that compounds interest at a rate of 4.1% quarterly?
b. You deposit $3,000 into an account that yields 3.22% interest compounded semiannually. How much will you have in the account in 5 years?
c. You want to put a $40,000 down payment on a store front for a new business that you plan on opening in 5 years. How much should you deposit monthly into an account with an APR of 3.75%, compounded monthly? Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...