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1. Fran and Ed plan to deposit $1,500 a year to their retirement fund for 35 years. If they carn an average annual return of

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1. Fran and Ed plan to deposit $1,500 a year to their retirement fund for 35 years. If they carn an average annual return of 9 percent, what would be the value of their retirement fund after 35 years? (noticed I bolded a year that means Fran and Ed are going to make annual deposits of 1500 for 35 years. 2. If you desire to have S10,000 for a down payment for a house in five years, what amount would you need to deposit today? Assume that your money will earn 5 percent. (Hint have told you the future value therefore you are attempting to figure out the present value. Also, the question asks what are you depositing today not annually over 5 years therefore, this is 1 single deposit.) 3. If you deposit $6,000 into a savings account earning 0.5% interest (yes, % %) how much money will you have in 25 years? 4. If Keystone Colleges need $25,000 dollars a year for the next 25 years to maintain the maple trees on campus, how much money would they need to deposit into an account today caming 6.8% interest? 5. You are planning for your retirement, upon retirement you have decided to move to the Florida Keys. You would like to purchase a condominium on the beach. You estimate you will need $250,000 to purchase that condominium in 20 years. a. How much do you need to deposit into an account today earning 5.3% interest if you wish to have $250,000 in 20 years? b. Presume the price of housing will not remain constant and you expect the rate of inflation on the price of homes to increase by 1.1% annually. How much would you need to deposit into an account today in an account earning 5.3% interest given the rate of inflation? c. Given the same question as listed above with the same rate of inflation and interest rate how much would you need to deposit initially, in year 5 and in year 10 if you could not make the entire deposit today

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