• Luke invested $170 at 6% simple interest for a period of 7 years. How much will his investment be worth after 7 years?

• Mr. Smith wishes to retire in 9 years. When he retires he would like to have $400,000 in his bank account. Mr. Smith's bank pays 5% per year compounded annually. How much should he deposit now to attain his goal?

• A grandmother deposited $1,000 in an account that pays 6% per year compounded annually when her granddaughter was born. What will the value of the account be when the granddaughter reaches her 17^th birthday?

• In order to purchase a new freezer in 2 years, the Steakhouse Restaurant has decided to deposit $1,000 in an account that earns 3% per year compounded monthly for 2 years. How much money will be in the account in 2 years?

• Stor-Away Co. needs to buy a new forklift. The company decides to deposit $3,700 in an account that earns 3% per year compounded semiannually. How much will the investment be worth in 2 years?

• John wishes to set up an account for his grandfather so that he can have some extra money each month. John wants his grandfather to be able to withdraw $120 per month for the next 3 years. How much must John invest today at 5% per year compounded monthly so that his grandfather can withdraw $120 per month for the next 3 years?

• John got a part time weekend job at a local restaurant to save for a new car. He plans on depositing $120 per month for the next 3 years in a savings account with a rate of 5% per year compounded monthly. How much will he have saved toward his down payment at the end of the 3 year period?

• Fred purchased a new car. His monthly payments are $500 per month. He will be paying on his car for 6 years, and the loan costs 8% per year compounded monthly. What was the original cost of the car?

• Jackson deposits $160 each month into a savings account earning interest at the rate of 8% per year compounded monthly. How much will he have in this account at the end of 7 years?

• Esther pays $355 per month for 5 years for a car. She made a down payment of $4,500. If the loan costs 7.1% per year compounded monthly, what was the cash price of the car?

• You borrowed $11,000 from your bank to build a small cabin on your property. The bank will charge 10% per year compounded quarterly. You decide to payoff this loan in 3 years by making quarterly payments. How much are your quarterly payments?

• Your brother would like to have $27,000 in 2 years for the purchase of a new car. What monthly payment should he make into an account paying 6% per year compounded monthly to attain his goal?

• A school realizes that they need a new copy machine for their main office. The copy machine costs $5,500. After speaking with the financial advisor, they decide to pay 20% of the cost of the machine in cash and finance the rest through their credit union. How much is their monthly payment if the credit union will charge 4% per year compounded monthly for 3 years?

• The Flores Family loves to go sailing on the weekends. Mr. Flores has decided to purchase a more spacious sailboat. The sailboat he is interested in buying in 3 years will cost him $20,000. An account at Invest Well Bank earns 6% per year compounded monthly. How much should Mr. Flores deposit in this account at the beginning of each month to be able to pay cash for the sailboat in 3 years?