1. You are planning to go on vacation in 3 years. You think you will need about $10,000 for the trip. How much would you need to deposit into your savings account today if your bank pays a 4% interest rate? FV = 10000. n= 3. R = 4% CPT= PV = 8889.96

2. You just received a $10,000 inheritance from your grandmother. You expect to put this into a savings account that pays 4% interest. How much money will you have in your savings account in 3 years? PV = 10000 N = 3 R = 4% CPT = FV = 11,248.64

3. You just opened an ice cream parlor near the beach. 1300 customers entered your store on opening day. On the 6th day, the number of customers that visited your store quadrupled. What was the daily growth rate of customers? Pv = 1300 N = 6 Fv = 1300 * 4 Cpt i/y = 25.99%

4. Youre in the market for a new car. You have identified a few cars that youre interested in each with various prices. Nissan: $20,000 Hummer: $27,000 Porsche: $30,000. The most you can afford for a monthly car payment is $600 and you have $0 in savings (no down payment). Your credit score is below 600 so the best rate you qualify for is 14.06% quoted yearly. The standard loan length in America is 60 months. Which one of these cars can you afford? Intuition: Interest rates are generally quoted yearly. You must adjust the rate from yearly to monthly since youre making monthly payments.