Keshia received a one-time bonus of $3,000. She plans to invest it in a CD (certificate of deposit) for 4 years at 5%. How much monev will Keshia have at the end of the 4 vears? (Round the final result to the nearest dollar.I Anora hit a small lottery that will pay her $2,500 per year for 10 years. Anora plans to deposit her winnings as she receives them, in a savings account earning 6%. Fernando and Simi have a newborn baby and are thinking ahead to college for their child. They estimate that at the end of 18 years, they will need $35,000 to send their child to college. If they can earn 5%, how much would Fernando and Simi have to deposit today, in order to have the $35,000 in 18 Fernando and Simi are looking at the result from #33 above and wondering how they are going to come up with so much cash to deposit today. Then, out of the blue, a great, great, great aunt that Simi didn't even know she had, died and left simi $1,500 per year for 18 years. 1. What is the present value of Simi's inheritance? (Assume 5% interest rate.) Will simis inheritance be enough to get the child through college? Most of us won't be as lucky as Fernando and Simi, but maybe we could manage to save $50 a month in a college fund for a child. Assuming that you do invest $50 a month at 12%, for 18 years, how much will the child have for college when he/she is 18? (Round the final result to the nearest dollar.) Hint: If you save monthly for 18 years, you will have 216 interest periods ( 12 months per year X18 years). And since you are assuming you will earn 12% per year, 12%/12 months =1% per month. So you would need a table with 216 rows and a 1% column in order to get the right factor. Here are the factors for 216 interest periods, 1% per period: A1 P Present Value of $1 No. \begin{tabular}{l|l|l|l|l|} Score Summary | PV and FV Practice & PVS PVA & FVS & FVA \\ \hline \end{tabular} Ready 2 fx Acossubiliy imverigate Present Yalue of an Ordinary Anauity of $1 No. \begin{tabular}{|l|l|l|l|l|l|} \hline Score Summary & PV and FV Practice & PVS & PVA & FVS & FVA \end{tabular}