Suppose that you earned abachelor's degree and nowyou're teaching high school. The school district offers teachers the opportunity to take a year off to earn amaster's degreee. To achieve thisgoal, you deposit $ 400 at the end of each year in an annuity that pays 5 % compounded annually.

How much will you have saved at the end of fiveyears?

Find the interest.

After 5 years, you will have approximately $?

2.- At the age of 30 to save forretirement, you decide to deposit $5 at the end of each month in an IRA that pays 5.5 compounded monthly.

Use the following formula to determine how much you will have in the IRA when you retire at age 65.

Find the interest.

you will have approximately $? in the IRA when you retire.

in the IRA when you retire.