11.3 Use the tables in Appendix B to answer the following questions.

A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account?

B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12%

interest rate?

C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years?

D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years.

Assuming you can earn 8% interest, which do you recommend and why?