Question: Let the letters A, B, C, D, E and F be represented as follows: A = FV of a lump-sum B = the PV of

Let the letters A, B, C, D, E and F be represented as follows: A = FV of a lump-sum B = the PV of a lump-sum C = FV of an annuity F = PV of an annuity D = Sinking fund payment E = Installment payment

For each of the given problems, (1) classify, by writing the appropriate letter; (2) write an equation for the solution using the given values; (3) use a calculator to find the solution

a. If $10,000 is invested into an account (compounded quarterly) paying 8%, how much it will grow to in 15 years?

b. How much should be invested monthly into an account that earns 6% interest for the next 30 years in order to have $250,000?

c. If one can afford to make a payment of $3,000 per month for the next 30 years, what the price of a house she can buy if the interest rate is 6% and she can put $200,000 down payment?

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