1. At age 25?, someone sets up an IRA? (individual retirement? account) with an APR of 7?%.
At the end of each month he deposits ?$30 in the account. How much will the IRA contain when he retires at age? 65? Compare that amount to the total deposits made over the time period.
After retirement the IRA will contain ?$
?(Do not round until the final answer. Then round to the nearest cent as? needed.)
2. Deposits of ?$350 per month are put into an investment plan that pays an APR of 6.1?%. How much money will be in the plan after 25?years?
A total of ?$ will have been paid into the account over 25 years and after the 25 ?years, the account will have a balance of ?$ .
3. Use the savings plan formula to answer the following question.
Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 6 %. How much should you deposit monthly to accumulate ?$81,000 in 15years?
You should invest ?$ each month.
4. You want to purchase a new car in 6 years and expect the car to cost ?$65,000. Your bank offers a plan with a guaranteed APR of 5.5 % if you make regular monthly deposits. How much should you deposit each month to end up with ?$65,000 in 6 ?years?
You should invest ?$ each month.