Sean and his partner Josh just adopted a baby and want to start saving for their child's education. Suppose they deposit $95 at the end of every month into an account earning 6.2% compounded monthly. (copyrighted exam question - do not distribute) A. Periodic Compound Interest: S = P(1 + m B. Continuously Compounded Interest: S = Pert C. Future Value of an Ordinary Annuity: S = R mt (1+)mt - 1 m 1 (1+ -mt D. Present Value of an Ordinary Annuity: P = R m m 1. Choose the correct formula above for this scenario. 2. How much will the account be worth in 18 years? $ (Round to the nearest dollar and don't include a comma in your answer.) 3. How much interest did Sean and Josh earn? $ (Round to the nearest dollar and don't include a comma in your answer.) Olivia received $9,000 from a lawsuit settlement. She deposited the money into an account earning 6.5% compounded monthly for 6 years. Olivia wants to know the future value of her investment and how much interest she will earn. (copyrighted exam question - do not distribute) r m A. Periodic Compound Interest: S P 1+ = B. Continuously Compounded Interest: S = Pert C. Future Value of an Ordinary Annuity: S = R D. Present Value of an Ordinary Annuity: P=R mt mt - (1+)- r m 1-(1+ +) 1 -mt m 1. Choose the correct formula above for this scenario. 2. What is the future value of Olivia's investment? $ (Round to the nearest dollar and don't include a comma in your answer.) 3. How much interest did Olivia earn? $ (Round to the nearest dollar and don't include a comma in your answer.) Suppose we want to find the future value of $7,000 invested at 8.5% compounded continuously for 6 years. (copyrighted exam question - do not distribute) A. Periodic Compound Interest: S = P(1+. r mt m B. Continuously Compounded Interest: S-Pert = C. Future Value of an Ordinary Annuity: S = R (1+)mt - 1 1 - D. Present Value of an Ordinary Annuity: P = R 1. Choose the correct formula above for this scenario. 2. What is the future value? $ m (1+) -mt (Round to the nearest dollar and don't include a comma in your answer.)