a) James wants to buy a car in 5 years. The car is expected to cost $30,000 at that time. How

much money would James need to put as a single lump-sum amount today in a savings account

earning 4% per year in order to accumulate that $30,000 in five years?

b) John wants to buy a car in 5 years. The cost of the car is $30,000 at that time. How much

must John save each year in a saving account earning 4% per year to accumulate $30,000 in

five years?

c) Jim invests $15,000 today into an account, If the amount in the account accumulates to

$17,364.37 at the end of 3 years, what was the interest rate that Jim earned on the account?

d) Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years.

If Bobbi earns 12% per year on that account, how much will she have accumulated at the end

of the 50 years?