Chapter $5$ Homework

Quantitative Problem $1$: You plan to deposit $$2,200$ per year for $6$ years into a money market account with an annual return of $3\%.$ You plan to make your first deposit one year from today.

a$.$ What amount will be in your account at the end of $6$ years? Do not round intermediate calculations. Round your answer to the nearest cent.

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b$.$ Assume that your deposits will begin today. What amount will be in your account after $6$ years? Do not round intermediate calculations. Round your answer to the nearest cent.

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Review the FVAN definition and its equation

Understand the difference between an ordinary annuity and an annuity due.

Be careful about the order of mathematical operations if using the equation.

If using a financial calculator, be careful about the meaning of the negative sign.

retirement account will earn $15\%$ annually.

a$.$ What amount do you need in your retirement account the day you retire? Do not round intermediate calculations. Round your answer to the nearest cent.

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