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**** please hand-write/type out work, NOT using a spreadsheet **** Someone wants to save a sum of money. They are planning to save for a

**** please hand-write/type out work, NOT using a spreadsheet ****

Someone wants to save a sum of money. They are planning to save for a 5 year period with a deposit into an account at the end of each month. Interest is i = .004 effective per month. They anticipate being able to save 100 dollars a month for the first year and increase that amount by 2 percent each YEAR after that. How much will they have saved at the end of the 5 year period, and what is the present value (at time 0) of that amount?

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