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One can solve for payments (PMT), periods (N), and interest rates (1) for annuities, The easiest way to selve for these variables is with a
One can solve for payments (PMT), periods (N), and interest rates (1) for annuities, The easiest way to selve for these variables is with a fhanclat caiculator or a spreagsheet. Quantitative Problem 1: You plan to deposit $2,000 per year for 4 vears into a money market account with ah annual return of 2%. You plan to make yeur fint deposit one year from today. a. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Reund your answer to the nearest cent b. Assume that your deposits will begin today. What amount will be in your account after 4 years? Do net round insermedate calculations. Round your anower to the nearest cent. 5 Quantitative Problem 2: You and your wife are making plans for retirement. Your plan so living 25 years anei you retire and would he to have 590,000 annually an a. What amount do you need in your retirement account the day you retire? Do not round nitermedate cainuations. Rqund your ansmer to the nearest cent
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