Jane was born Aug 1st 18 years ago. Her parents contributed $2,000 into a Coverdell Education Savings Account (ESA) at her birth and on her birthday each year. Its Aug 5th and Jane is ready to withdraw her first tuition payment. If she discovers her ESA is $64,131.91, what was the average rate of return for the investment? Does the question ask or are the payments at the beg(gining) or end of the periods?____________ What unit of time answers the question? _______________ Do I need to convert other variables to the answers unit of time? __________ Circle the variable below that answers the question. N = I = PV = PMT = FV =

1. (1pt) You contribute $250.00 per month in to a retirement account. The account averages 5.5% return. Disregarding tax implications, how much do you have in the account at the end of 10 years?

Does the question ask or are the payments at the beg(gining) or end of the periods?____________

What unit of time answers the question? _______________

Do I need to convert other variables to the answers unit of time? __________

Circle the variable below that answers the question.

N =

I =

PV =

PMT =

FV =

2. (1pt) You decide to borrow money from Cousin Vinnie and he has agreed to a 20 percent interest rate per year. If you borrowed $200 a year ago, and know you have to pay him in full exactly $716.64 (and make no other payments to him), how long from now until you must pay him back?

Does the question ask or are the payments at the beg(gining) or end of the periods?____________

What unit of time answers the question? _______________

Do I need to convert other variables to the answers unit of time? __________

Circle the variable below that answers the question.

N =

I =

PV =

PMT =

FV =

3. (1pt) Five years ago, you bought a piece of art at auction for $1.2 million. Yesterday, you sold that piece at auction for $2,630,937.64. You also purchased a new piece yesterday for $300,000. If the piece you just bought earns the same rate of return as the first one, how much will you be able to sell it for in 8 years?

Does the question ask or are the payments at the beg(gining) or end of the periods?____________

What unit of time answers the question? _______________

Do I need to convert other variables to the answers unit of time? __________

Circle the variable below that answers the question.

N =

I =

PV =

PMT =

FV =