Problem 4:

You are planning your retirement and you come to the conclusion that you need to have saved $1,250,000 in 30 years. You can invest into an retirement account that guarantees you a 5% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal?

Problem 5:

You will receive a stream of payments beginning at the end of year 1 and the amount will increase by $10 each year until the final payment at the end of year 5. If the first payment is $50, what amount will you have at the end of year 5 if you can invest all amounts at a 7% interest rate?

Problem 6:

You will receive a stream of annual $70 payments to begin at the end of year 0 until the final payment at the end of year 5. What amount will you have at the end of year 5 if you can invest all amounts at a 11% interest rate?

Problem 7:

You are trying to make a budget based upon the amount of cash flow that you will have available 5 years from now. You are initially promised a regular annuity of $50 with the first payment to be made 1 year from now and the last payment 5 years from now. However, you are actually going to receive an annuity due with the same number of payments but where the first payment is to begin immediately. How much (or less) cash will you have 5 years from now based upon that error if the rate to invest funds is 10%?