1. Kai wants to take a luxury $7,000 vacation. If Kai can set aside $1800 at the beginning of each year, and earn a 4% annual rate of return, how many years will it be until Kai can take the vacation?
2. Lee invested $22000 and added $4000 at the end of each year. At a 7% rate of return, Lee eventually had $100,000. How long did it take?
3. London is a new client and wants to start investing today. With a 6% rate of return compounded quarterly, and planning to retire in 27 years, how much money must London invest each month in order to reach the goal of $530,000 before retiring?
4. Keegan borrows $2200 from you. You decide to charge 10% interest. If the interest compounds annually, and Keegan makes payments of $20 per week, how long will it take to get your money back with interest? (Assume 52 weeks per year.)
5. Kennedy is starting college and is worried about having enough money. Kennedy has saved up $27,000 but the annual costs are $10,200 per year for three years. Assuming savings can earn 2% per year, how much more money would be needed today to make it to the end?