Examine each of the following situations, labelled 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 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 1.14% quarterly?
b. You deposit $3,000 into an account that yields 0.92% interest compounded semi-annually. How much will you have in the account in 5 years?
c. You want to put a $40,000 down payment on a storefront 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 1.4%, compounded monthly?