Math Models Unit 8 Lesson 7

4. You plan to deposit $1,750 quarterly for 30 years at 9% interest, compounded monthly. How much will you have in the account in 30 years?

$1,109,771.11

7. When you are 45 you start saving for your retirement. You want to have $2.5 million when you retire in 23 years. How much would you need to deposit monthly to have this much at 7.5% interest?

$3,388.55

3. You plan to deposit $400 monthly for 30 years at 5% interest, compounded monthly. How much will you have in the account in 30 years?

$336,077.65

5. When you turn 22, you plan to start saving for your retirement. You want to have $2.5 million when you retire in 50 years. How much would you need to deposit monthly to have this much at a 7.5% interest rate compounded monthly?

$378.47

9. You want an annuity to pay you $45,000 per year for 25 years. If the annuity has an interest rate of 9.5% compounded monthly, how much must be in the annuity at the beginning of the 25 years?

$451,616.47

8. You want an annuity to pay you $50,000 per year for 30 years. If the annuity has an interest rate of 7.5% compounded monthly, how much must be in the annuity at the beginning of the 30 years?

$620,392

10. You want an annuity to pay you $50,000 per year for 30 years. If the annuity has an interest rate of 6.5% compounded monthly, how much must be in the annuity at the beginning of the 30 years?

$682,651.34

2. You plan to deposit $1,500 quarterly for 35 years at 7% interest, compounded monthly. How much will you have in the account in 35 years?

$928,313.05

6. When you turn 30, you plan to start saving for your retirement. You want to have $2.5 million when you retire in 38 years. How much would you need to deposit monthly to have this much at a 7.5% interest rate compounded monthly?

$962.37

1. Choose the correct definition. annuity :

an investment that pays the investor a set amount money each year for a number of years, often over an investor's lifetime