1. Vanessa saved $60 at the end of every month for 5 years in her bank account that earned 3.30% compounded monthly.

a. What is the accumulated value of her savings at the end of 5 years?

Round to the nearest cent

b. What is the interest earned over the 5 year period?

Round to the nearest cent

2. Calculate the amount of money Corey had to deposit in an investment fund growing at an interest rate of 3.50% compounded annually, to provide her daughter with $13,000 at the end of every year, for 2 years, throughout undergraduate studies.

Round to the nearest cent

3. Ian planned to buy a house but could afford to pay only $14,000 at the end of every 6 months for a mortgage with an interest rate of 3.40% compounded semi-annually for 30 years. She paid $21,500 as a down payment.

a. What was the maximum amount she could afford to pay for a house?

Round to the nearest cent

b. What was her total amount spent for the house through the mortgage period including the downpayment (not taking the time-value of money into account)?

Round to the nearest cent

c. What was the total amount of interest paid through the mortgage period?

Round to the nearest cent

Answer rating: 100% (QA)

1 Vanessas Savings a Accumulated Value To calculate the accumulated valuewe can use the compound interest formula A P 1 rnnt Where AAccumulated value ... View the full answer