1. You have been saving for a car over the last seven years and you plan to purchase the car at the end of the next three years. Given the following:

a) You have been saving for the last seven years by depositing $500 at the end of each year into Bank A. You earned 4% annual compounding during the last seven years at Bank A. How much do you have at the end of the seventh year?________________

b) At the end of the seventh year, you withdraw your money from Bank A and deposit it into Bank B where you will earn 5% interest compounded semiannually for the next three years. How much money will you have at the end of three years when you withdraw your money from Bank B to purchase the car?_____________________________

3. You plan to deposit the following amounts in your savings account at the end of each 6 month period (semiannually). Your deposit/per semiannual period are presented in the table below: 6 month 6 month 6 month 6 month 6 month 6 month 6 month 6 month $500 $750 $1200 $1300 $1250 $425 $675 $350 Assuming you earn 6% semiannual compounding, how much will you have at the end of four years?_____________________

4. Assume a person retires today with $1,640,000 in his account. Assume the interest rate is 4.5% compounded monthly. The person plans to withdraw the same amount at the beginning of each month for the next 20 years until all of the money is gone. How much will the person withdraw each month? ________________ 5. Assume a 6% interest rate compounded quarterly. What is the Present Value of an investment that promises to pay the following: $1200 received at the end of each year for 30 years?___________________

5. Assume a 6% interest rate compounded quarterly. What is the Present Value of an investment that promises to pay the following: $1200 received at the end of each year for 30 years?___________________