One of Owens Financial Planning Extremists customers is the Northup family. The Northup family is planning to take a luxurious round-the-world cruise in 5 years and wants to consider different alternatives for saving the $250,000 necessary for this vacation.

1. What single amount would need to be invested today at the following annual rates, compounded annually?

a. 3.0% b. 3.6%

2. What single amount would need to be invested today at the following annual rates, compounded semi-annually?

a. 3.0% b. 3.6%

3. What single amount would need to be invested today at the following annual rates, compounded quarterly?

a. 3.0% b. 3.6%

4. What single amount would need to be invested today at the following annual rates, compounded monthly?

a. 3.0% b. 3.6%

5. What nominal annual rate compounded annually would provide the same answer as a 3% annual rate, compounded monthly?