You are considering saving $8,000 in a bank certificate of deposit. Stated interest rate is 6%. Find:
The future value in 12 years with quarterly compounding.
What is effective rate with quarterly compounding?
You anticipate needing $40,000 for a down payment on a home in five years. If you earn 8%, how much must you set aside now to achieve this?
Referring to #2, how much would you have to set aside at the end of each year, instead of now, to achieve the $40,000 objective?
You have begun a 401k at work, contributing $1,000 at the end of each year. How much is your account worth in forty years, assuming an 7% rate of interest?
Show all work, step-by-step (all calculator inputs; screen shot of completed work in Excel function argument is fine). No internet calculators.