Question
1) Justin is saving for his retirement 21 years from now by setting up a savings plan. He has set up a savings plan wherein
1) Justin is saving for his retirement 21 years from now by setting up a savings plan. He has set up a savings plan wherein he will deposit $116.00 at the end of every six months for the next 13 years. Interest is 7% compounded semi-annually.
(a) How much money will be in his account on the date of his retirement?
(b) How much will Justin contribute?
(c) How much will be interest?
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
2) Cam saved $295 each month for the last six years while he was working. Since he has now gone back to school, his income is lower and he cannot continue to save this amount during the time he is studying. He plans to continue with his studies for three years and not withdraw any money from his savings account. Money is worth 3.3% compounded monthly.
(a) How much will Cam have in total in his savings account when he finishes his studies?
(b) How much did he contribute?
(c) How much will be interest?
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
3) To purchase a specialty guitar for his band, for the last two years JJ Morrison has made payments of $119 at the end of each month into a savings account earning interest at 6.06% compounded monthly. If he leaves the accumulated money in the savings account for another three years at 6.56% compounded quarterly, how much will he have saved to buy the guitar?
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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