1. You need to have $10,000 to pay for your wedding in 5 years. How much do you need to deposit at the end of each year into a bank that pays 4% interest, compounded annually, in order to achieve your goal?
2. You obtain an installment loan to pay for graduate school in the amount of $30,000. If the lender charges you 7% interest and you are required to pay the loan off in equal annual installments over a period of 8 years, what is the amount of each installment?
3. If you place $4,000 a year in your pension plan and the plan earns 9% per year, how much will you have available for your retirement in 40 years?