Question: Section 1) This is a 5 part question please answer the following... 1) Caleb wants to go on a cruise for his Senior Trip. He
Section 1) This is a 5 part question please answer the following...
1) Caleb wants to go on a cruise for his Senior Trip. He needs $2500 for the trip. Caleb is currently a freshman. If he invests in a savings account that earns 6.1% interest compounded monthly, how much money does Caleb need to invest today?
A) $1023.36
B) $2320.63
C) $539.19
D) $1959.93
2) Matthew wants to have $2000 in 10 years. Matthew plans on making no deposits or withdrawals. The following are the choices in which he can invest:
Option 1) A savings account earning 1.5% compounding weekly.
Option 2) A checking account earning 3.2% compounded monthly.
Option 3) A money market account earning 2.8% compounded quarterly.
Explain which choice Matthew should choose.
3) Marcia wants to have $2000 in 10 years. Marcia plans on making no deposits or withdrawals. The following are the choices in which she can invest:
Option 1) A savings account earning 2.5% compounding monthly.
Option 2) A checking account earning 1.3% compounded weekly.
Option 3) A money market account earning 3.6% compounded quarterly.
Explain which choice Monica should choose.
4) Suppose you are depositing an amount today in an account that earns 6.25% interest, compounded quarterly. If your goal is to have $5000 in the account at the end of six years, how much must you deposit in the account today? Round to the nearest dollar.
A) $3507
B) $3657
C) $657
D) $2765
5) Katie is 25 years old and wants to save $1 million for retirement in 30 years. Assume she invests in a savings account that earns at least the current rate of inflation (6.7%). Determine how much money Katie must save based on the number of years that she waits to start saving to reach her retirement goal
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