2. You want to purchase a car in three years. You expect that you will need to have $20,000 at that time. If you can purchase a three-year certificate of deposit that pays 3% per year, how much will you need to invest today in order to meet your goal?

Table :

Answer __________________

3. You are planning for retirement. You expect to retire in 25 years, and you think that you can afford to save $2000 per month. Furthermore, you believe that you can reasonably expect to earn about 6% per year without taking too much risk. How much will you have accumulated at the time that you retire?

Table ___________________

Answer __________________

4. Your financial advisor calculates that you will have about $50,000 per year during your 30 years after retirement. If you retired today, how much money was in your retirement account assuming a conservative rate of 6%?

Table __________________

Answer __________________

5. You have about $6,000 each year at 8% that you are setting aside for a down payment on a home. How much money will you have for your home if you expect to purchase in 5 years?

Table ___________________

Answer __________________