You would like to begin saving for a down payment on a home. If you want to buy the home five years from now, and you will make annual end-of-year payments into your savings, how much will you have for your down payment if you save $500 per year and earn 10 percent on your investment, compounded annually (round to the nearest dollar)?
a. $2,256 b. $4,256 c. $$5,256 d. $$3,053 e. None of the above
2. Billy thinks he can save enough to deposit $1,200 in the bank at the end of each year for the next 30 years. How much will he have if the bank pays 6% interest, compounded annually?
a. None of the below b. $84,870.82 c. $74,870.82 d. $84,870.82 e. $94,869.82