4. For each of these situations, determine the savings amount. Use a financial calculator or the time value of money tables in the Chapter 1 appendix. (LO4.3)

a. What would be the value of a savings account started with $700, earning 4 percent

(compounded annually) after 10 years?

b. Brenda Young desires to have $15,000 eight years from now for her daughter’s college fund. If she will earn 6 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation.

c. What amount would you have if you deposited $1,800 a year for 30 years at 8 percent

(compounded annually)?