Chapter 8 In class assignment- submitted in Canvas

Use these factors to answer questions

n	i	PV$1	FV$1	PVA	FVA
3	5%	0.86384	1.15763	2.72325	3.1525
5	6%	0.74726	1.33823	4.21236	5.6371
60	0.50%	0.74137	1.34885	51.72556	69.7700

1. You want to have $30,000 at the end of 5 years for a down payment on a house. How much should you save each month to achieve your goal if you can earn 6%? $______ (round to nearest dollar)

2. You want to buy a $30,000 car today and will be making monthly payments for the next 5 years. What is your car payment if your borrowing rate is 6%? $______ (round to nearest dollar)

3. You won the local lottery for $60,000. Your choice is to take the $60,000 today or if you wait you can get $67,000 bonus in 3 years (guaranteed). Your current investment rate is 5%. What is the best economic decision, take the amount today or wait 3 years?

4. You plan to invest $2,000 every year for the next 5 years. What will be the value of your investment at the end of the 5 years if you can earn 6% annual interest? $_______ (round to nearest dollar)

5. Your parents have decided to give you $20,000 for a down payment on a house in 5 years. Assuming your parents are earning 6% annually, how much do they need to invest today so they have the money to give you in 5 years? $______ (round to nearest dollar)