Game of Life (annuities) Congratulations! You are about to experience different milestones of life. Calculate the money needed to achieve your financial goals at each point in your life. First comes love, then comes marriage... 1. As a newly married couple, you want to have $20,000 saved by your 25th wedding anniversary to take a trip to Hawaii. The annuity pays 4.2% compounded monthly. How much money must you deposit every month to finance your trip? Here comes the baby carriage.... 2. As a parent of a new baby, you wish to establish a college fund for your child. You deposit $100 every month into annuity for 18 years. The money earns 5 38% interest compounded monthly. Find the future value of the account. 3. How much money can the student withdraw from the above problem every month for four years? The account pays 6.1% interest compounded monthly. Life is getting stressful!!! 4. You want to start your own business. You want to withdraw $8,000 a month for a period of 5 years. This is the time you feel it will take to establish your business. This money resides in an annuity that pays 5.4% interest compounded monthly. How much money must be in your account to fulfill your goal? 5. While working for someone else, you plan to deposit money monthly for ten years into an annuity that pays 3% compounded monthly. What monthly deposit must you make to achieve the amount of money determined in the above question to start your business? Now it's time to kick back!!! 6. Congratulations! You prepared for your retirement. You deposit $300 every month for 40 years into a retirement annuity that pays 4.7% interest compounded monthly. How much money will be in the account when you retire? 7. The money saved from the above problem is transferred into an account that pays 2% interest compounded monthly. How much money can you receive monthly for 26 years