You want to purchase a new car in 3 years and expect the car to cost $30,000. Your bank offers a savings plan with a guaranteed APR of 5.5% if you make regular monthly deposits. How much should you deposit each month to end up with $30,000 in 3 years

2.According to one study, the average monthly cell phone bill in the U.S. is $70. If a 20-year old student with an average bill gives up her cell phone and each month invests the $70 she would have spent on her phone bill in a savings plan that averages a 4% annual return, how much will she have saved by the time she is 65?

3.You currently drive 300 miles per week in a car that gets 15 miles per gallon of gas. You are considering buying a new fuel-efficient car for $12,000 (after the trade-in allowance on your current car), which gets 50 miles per gallon. Insurance premiums for the new and old cars are $800 and $600 per year, respectively. You anticipate spending $1200 per year on repairs to the old car and having no repairs on the new car. Assume that gas costs $3.50 per gallon. Over a 5-year period, is it less expensive to keep your old car or buy the new car?

4.As a fringe benefit, Dennis Taylor receives a$51,000life insurance policy from his employer. The probability that Dennis will live another year is0.9615. If he purchases the same coverage for himself, what is the minimum amount that he can expect to pay for the policy? (Enter your answer to the nearest cent.)

5.An investor wants to analyze the earnings of a mutual fund account. Seven years ago, the value of the account was$23,000and it is now worth$28,750(no additional deposits were made). If the account is compared to a bank account paying interest that is compounded continuously, what interest rate would the bank account have to pay to match the mutual fund accounts earnings?

6.Suppose $18,100 is invested in a monthly compounded account at 3.01%. Approximately how long will it take for the balance to reach $39,820 ?

7.at your childs birth you begin contributing monthly to a college fund. the fund pays an apr 4.9% compounded monthly. you figure your child will need $30,000 at age of 18 to begin college. what monthly deposit is required?

8.at your childs birth you begin contributing monthly to a college fund. the fund pays an apr 4.9% compounded monthly. you figure your child will need $30,000 at age of 18 to begin college. what monthly deposit is required?

9.Bevan wants to make an investment today so that, after 8 years at 6% per year, compounded quarterly, he will have $5500. What is the present value he need to invest today to reach his goal?

10.Mrs PQ is saving for her daughter's education in five (5) years' time. Her estimation is that tuition and living costs will be $300 000. She decides to deposit $3 000 per month (at the beginning of each month) into an interest-bearing account, where she can earn 12% per annum compounded monthly.

Will Mrs PQ be able to meet her target at the end of the five-year period? Also determine whether there will be a surplus or shortfall after five years.