Problem
1. Michelle Smith is planning on taking her family to Disney World in three years' time. She plans on saving $20,000 each month for the next three) years. How much money will she accumulate at the end of that period if interest is 12% per annum?
2. Angela is planning for her daughter's university education in seven years' time. She estimated that the university education will cost $1,955,000. How much should she invest each year for the next seven years to achieve this goal if interest rate is 15%?
3. Mr. James would like an income of $300,000 per year in equal installments for fifteen years. How much should he invest in order to obtain this income if the interest rate is 20% compounded annually?
4. You expect to deposit the following cash flows at the end of years one through to five, $1, 000, $4, 000, $9, 000, $5, 000 and $2, 000 respectively. What is the future value at the end of year six if you can earn 10% compounded annually?