For each of these situations, determine the savings amount. Use the time value of money tables in Chapter 1 (Exhibit 1–3)

or in the Chapter 1 appendix. (Obj. 3)

a. What would be the value of a savings account started with $500, earning 6 percent (compounded annually) after 10 years?

b. Brenda Young desires to have $10,000 eight years from now for her daughter’s college fund. If she will earn 7 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 $1,500 a year for 30 years at 8 percent (compounded annually)?