Mary Kate, Ashley, Dakota, and Elle each want to buy a new home. Each needs to save enough to make a 25% down payment. For example, to buy a $100,000 home, a person would need to save $25,000. At the end of each year for four years, the women make the following investments:

Required:
1. Calculate how much each woman is expected to accumulate in the investment account by the end of the fourth year.
2. What is the maximum amount each woman can spend on a home, assuming she uses her accumulated investment account to make a 25% down payment?

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Expected Four Year Annuity Type of nual Accumulated Maximum Home Payment Account Return Investment Purchase Mary Kate 4,00 Savings Ashley Dakota Elle 2% 4 5,000 CDs 6,000 Bonds 6,000 Stocks