Dr. Russell wants to buy an expensive car which will cost $74,000 four years from today. He would like to set aside an equal amount at the end of each month in order to accumulate the amount needed. He can earn a 7% annual return. How much should he set aside?

$1,340.36

$1,541.67

$2,236.23

$1,109.44

Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years, during which time the fund will earn 6% interest with monthly compounding?

$361,526.14

$388,017.16

$402,766.67

$414,008.24

If we wish to accumulate $8,000 by the end of 4 years, how much should the annual payments be if we receive an interest rate of 10% on our investments? The first payment is made at the end of each year.

$2200

$2,000

$1,723.77

$2,200