Question 1
Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes from deposits and how much comes from interest?
A = 
A = 
P = 
Periodic Deposit: $? at the end of every three months
Rate: 4.25% compounded quarterly
Time: 5 years
Financial Goal: $70,000
◦ $2351; $47,020 from deposits and $22,980 from interest
◦ $3764; $37,640 from deposits and $32,360 from interest
◦ $3496; $69,920 from deposits and $80 from interest
◦ $3160; $63,200 from deposits and $6800 from interest
Question 2
Solve the problem. Round up to the nearest dollar.
You would like to have $52,000 in 5 years for the down payment on a new house following college graduation by making deposits at the end of every three months in an annuity that pays 4.25% compounded quarterly. How much should you deposit at the end of every three months? How much of the $52,000 comes from deposits and how much comes from interest?
◦ $2796; $27,960 from deposits and $24,040 from interest
◦ $2347; $46,940 from deposits and $5060 from interest
◦ $2597; $51,940 from deposits and $60 from interest
◦ $1746; $34,920 from deposits and $17,080 from interest
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