HERE ARE SOME FORMULASFV = PV (FVIF) , FVA = PMT (FVIFA), PV = FV (PVIF), PVA = PMT (PVIFA),

ATTACHED IS THE FORMULAS AND TABLES THAT YOU WILL NEED TO USE! MUST USE THIS MATERIAL OR NO CREDIT WILL BE GIVEN!!!!

NOTE: you MUST show all work INCLUDING the appropriate formula for all problems. If you don't show the formula the grade for that problem is zero - as in nothing - and I don't care if you do have the "correct answer" - it's still zero, you know, the number between one and minus one. Yes, I'm serious!

ATTACHED IS THE FORMULAS THAT YOU MUST USE!! ALSO THE TABLES THAT MUST BE USED IT TOO.

1. Don may not be the brightest candle on the cake. He has more taxes withheld from his paycheck so he will get a large check come April from the Federal government. Well, this check came in the mail yesterday. $1,200.00 and he deposited it into a savings account paying 4% interest. Assuming he leaves it there for four years, how much money will he eventually have?

Response Feedback:

Per the course procedures and several announcements, you are required to use the formulas and the financial tables for all time value of money problems. Please see the announcement that posted at midnight Monday for details. For this problem, you have the correct formula listed but did not use the tables as required. Answer is also incorrect possibly due to the numbers you used.

Question 12

12. Bill plans to fund his individual retirement account (IRA) with a contribution of $2,000 at the end of each of the next 15 years. If he can earn 13% on his contributions, how much will he have at the end of the twentieth year? (two steps required)

Selected Answer:	FVA= PMT (FVIFA i,n) FVIFA= (1+R)n - 1 / r FVA= 2000 (80.94) fVA= $161,893.60
Response Feedback:	This was a two step problem as indicated above. One for the 15 years and one for the remaining 5.

Question 13

0 out of 10 points

13. I have some good news and some bad news. The bad news is: no member of you family has ever lived past age 60. The good news is: think of how much social security money you family has saved the rest of us! Anyway you just "celebrated" your 40th birthday (complete with all those lovely black balloons that read, 'Over The Hill"). Since you are certain the grim reaper will visit you in 20 years, you decide to purchase an investment that will pay you $6,000 each year until you reach room temperature" - that is - age 60. If this investment returns 6% to you, how much should you be willing to pay for it?

Selected Answer:	6% X 120,000= 7200
Response Feedback:	time value of money formula needed

Dont use the one with exponent-will receive 0 as a grade

Question 14

14. You hate paying interest, but someday you want to buy a home. Easy - pay cash! After debating how much you should pay for this house, you decide a quarter of a million dollars has a nice ring to it. Assuming your bond fund will pay 8% and you have 12 years to save, how much will you have to save each year?

Question 15

15. You are given a gold coin originally purchased by your great-great grandfather 50 years ago. He paid $1.00 for it at the time. Checking with Coins-R-Us you find the coin is now worth $450. If you sell it now, what will be the rate of return?

Question 16

16. Once upon a time, your mother told you to "pay yourself first" - and you always listened to your mother (except for the time you and two of your friends went to Atlantic City in the middle of the night ... well never mind THAT!). Twice each year (6 months apart) you place $400 in your savings account at your local credit union. The credit union pays 4% annual interest compounded semi-annually. How much will your savings grow to in eight years?

Question 17

BONUS

How long will it take a sum to double at 9% interest (I need to see the appropriate PV/FV formula - if you know the "rule of 72s" that's great - just don't use it here!)