Assume that you plan to buy a condo 5 years from now, and you estimate that you can save $2,500 per year. You plan to deposit the money in a bank that pays 4% interest, and you will make the first deposit at the end of the year.

How much will you have after 5 years? How will your answer change if the interest rate is increased to 6% or lowered to 3%?

AppendixLO1