Continuing Case 5. Time Value of Money A. Jamie Lee needs to save a total of $9,000 in order to get started in her cupcake caf venture. She is presently depositing $1,800 a year in a regular savings account. Calculate the future value of these deposits. B. Assuming that she leaves her emergency fund of $3,100 untouched, how much will her emergency fund be worth? C. What if Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount she would need now to ensure that she had $9,000 when she wanted to open the cupcake caf? D. As Jamie Lee is planning ahead for operating the cupcake caf, she calculates that she will need $24,000 per year in salary. What is the value of five years of salary when the cupcake caf opens? (Assume that she will take the salary as a one-time payment each year.) Use the table below and Exhibit 1-B, Exhibit 1-A, Exhibit 1-C, and Exhibit 1-D to calculate the balances of the information provided above. Assume that the time period for each scenario is 5 years, and the interest rate is 2%. A. Future Value of a Series of Deposits Regular deposit amount B. Future Value of a Single Amount Current amount times C. Present Value of a Single Amount Future amount desired D. Present Value of a Series of Deposits times Regular amount to be withdrawn times times Future value of annuity factor Future value factor Present value factor Present value of annuity factor equals equals equals equals Future value amount Future value amount Present value amount Present value amount

Continuing Case 5. Time Volue of Money yesr in a regular savings account Calculate the future value of these deposits 8. Assuming that she leaves her emergency fund of $3,00 untoucthed, bow much wil her emergency Aund be worth? C. What id Jamie Lee hod a relative that could give her money oow thot the could invest? What is the minimum amount she would need now to ensure that she had $9.000 when she wamed to open the cupcake cate? D. As Jamie Lee is planning ahesd for cperating the cupcake cate, she calculstes that she wil need 524,000 per year in:salary, What is Assume that the time period for eoch scenario is 5 years, and the inferest rate is 2K A. Future Value of a secies or Deposits Hegular deposit amount times: * E. Future Value of o single Ameunt E. Future Value of o single Ameunt C. Present Value of a Single Amount Future anound desined Tulure value of Innility factor equals i. times * Emes * Future value ambont D. Present Value of a Series of Deposits