6. Holly wants to have $50,000 available in year 2022. Holly plans to make annual deposits into an account paying 6% in years 2017 through 2020. What size annual deposits does Holly need to make to accomplish her goal?

Answer: $10,172.28

7. In 2006, Harold deposited $50,000 in an account paying 6% annual interest. Harold wants to make five equal annual withdrawals from the account starting with the first withdrawal in 2017. Further, Harold wants to have exactly $100,000 left in the account in 2023. How large can each of the annual withdrawals be?

Answer: $5,468.82

11.

Susan is beginning to plan college savings accounts for her two children. Her son Bobby is 8 and will begin college in 10 years when he turns 18. Her daughter Mallory is 2 and will begin college in 16 years when she is 18. Susan plans to deposit $10,000 per year starting next year into a joint account that earns 8.0% annually. Her last deposit will occur in the year that Bobby starts school. If Bobbys schooling costs $25,000 each year for four years, and Mallorys schooling costs $30,000 each year for four years, will Susans plan provide enough money for both her childrens college education? By how much will Susan meet/miss the goal when she quits depositing money in year 10? (Assume schooling costs are paid after the year is completed, i.e. Bobbys first tuition payment will occur at end of year 11).

Answer: No, Susan will miss by $553.61