1. Peter and Amy Chambers have saved $4,500. They are accumulating funds for a down payment on a house. If they can invest these funds at 3% annual interest for 5 years, how much money will they have accumulated at the end of this five-year time-frame?
2. Janice is hoping to save $200,000 by the time she retires in 20 years. How much must Janice deposit annually at the end of each year to reach this retirement goal on December 31, Year 20, assuming she can earn a 4% annual rate of return on her retirement account?
3. Assume that you have saved $2,000 to invest today. At an annual interest rate of 8%, how much money will you have accumulated at the conclusion of each of the following time-frames?
4 years:
8 years:
12 years: