REQUIRED FORMAT example:

Question: How much do I deposit each month if I want $10,000 in 5 years at 6%?

YOUR written ANSWER would be the following:

1. Your timeline

0 1 2 3 .. 5

? ? ? ? ? ? ?? ? ? 10,000

b. Problem Type: FVA PMT

c. Solution:

$10,000 x FVA factor (6%/12, 5x12) = FVA answer

$10,000 x 69.77 = $143.33

Questions I need answered:

1. Ben wants to get a loan of $8,000. If the rate is 6% and term is 5 years, what would his monthly payments be? Remember the relationship between when you get the money from a loan and when payments are made.
2. Sam deposits $600 each year for 10 years earning 4%. How much would he have at the end of the 10 years?
3. Greg wants to go to travel around the world for the next 4 years. He believes he will need $36,000/year to live on. He wants to know how much money he must have in his account now to be able to fund his travels. Assume the money will earn 4%.