1. You have decided that, beginning one year from now, you are going to deposit your $3.200, annual dividend check at the credit union to build up a retirement fund. The account will be credited with 7% annual Interest. 

(a) If you retire 30 years from now, how much will be in the account at that time?

 (b) If you decide to retire 10 years earlier than that, how much will be in the account? 

(c) What is your loss per year (or annual loss) of shortening your investment program by 10 years?

2. What is the future value of an annuity due of $2,000. per year for 17 years at an 8% compound annual rate of interest?

3. The round-trip world trip you and your spouse Intend to take on your 25® wedding anniversary, 5 years from now, will cost $42,000. How much should you set aside each year, BEGINNING TODAY, to reach that objective if you can earn a 7% compound annual interest rate on your money?

Answer rating: 100% (QA)

1 a To calculate the future value of your annual dividend checks deposited at a credit union with a ... View the full answer