Extra Credit Problem: 1. WITHOUT the use of the TVM Solver, determine how much money you need to deposit into a newly opened account (in which no money was initially deposited) at the end of each six months for the next 5 years in order to earn a total of $180.29 in interest during the 5 years. The account earns 2.21% interest compounded semiannually. Show, in detail, how you arrive at your answer. Show intermediate steps that clearly indicate that you did not use the TVM Solver. (3 points) 2. A couple has decided to start a college educational trust fund for their new born daughter. Suppose a couple deposited an initial $50,000 into the account on the child's actual date of birth and then for the next 15 years, on the day before her birthday, they make a deposited $6,000 into the account. After the tenth year, the couple stopped depositing money into the account. When their daughter goes off to college, the trust fund will pay her R dollars on her 18th, 19th, 20th, and 21st birthday. Use the TVM solver to help determine the value of R if the money earns 1.56% interest compounded annually. Show in detail how you arrived at your answer. Your final answer should be in the form of a sentence. Write short comments in your solution that describe the steps that you use to solve this problem. Note: There is one small, but very important detail that you need to determine that will determine if you calculate the correct answer or not; so think about each step very carefully. (3 points). Extra Credit Problem: 1. WITHOUT the use of the TVM Solver, determine how much money you need to deposit into a newly opened account (in which no money was initially deposited) at the end of each six months for the next 5 years in order to earn a total of $180.29 in interest during the 5 years. The account earns 2.21% interest compounded semiannually. Show, in detail, how you arrive at your answer. Show intermediate steps that clearly indicate that you did not use the TVM Solver. (3 points) 2. A couple has decided to start a college educational trust fund for their new born daughter. Suppose a couple deposited an initial $50,000 into the account on the child's actual date of birth and then for the next 15 years, on the day before her birthday, they make a deposited $6,000 into the account. After the tenth year, the couple stopped depositing money into the account. When their daughter goes off to college, the trust fund will pay her R dollars on her 18th, 19th, 20th, and 21st birthday. Use the TVM solver to help determine the value of R if the money earns 1.56% interest compounded annually. Show in detail how you arrived at your answer. Your final answer should be in the form of a sentence. Write short comments in your solution that describe the steps that you use to solve this problem. Note: There is one small, but very important detail that you need to determine that will determine if you calculate the correct answer or not; so think about each step very carefully. (3 points)
