Question

You want to buy a condo 5 years from now, and you plan to save $1,500 per year, beginning one year from today. You will deposit the money in an account that pays 4% interest. How much will you have just after you make the 5th deposit, 5 years from now? (Round final answer to 2 decimal places. Omit the "$" sign in your response.)

Your sister turned 45 today, and she is planning to save $4800 per year for retirement, with the first deposit to be made one year from today. She will invest in a mutual fund that's expected to provide a return of 7.5% per year. She plans to retire 20 years from today, when she turns 65, and she expects to live for 20 years after retirement, to age 85. Under these assumptions, how much can she spend each year after she retires? Her first withdraw will be made at the end of her first retirement year. (Round final answer to the nearest dollar. Omit the "$" sign in your response.)

Answer 1

1)	Year	Deposit at end of year	Accumulated value
	1	1500	1500.00
	2	1500	3060.00
	3	1500	4682.40
	4	1500	6369.70
	5	1500	8124.48
	Correct answer is 8124.48
2)	Age	Deposit at end of year	Accumulated value
	46	4800	4800.00
	47	4800	9960.00
	48	4800	15507.00
	49	4800	21470.03
	50	4800	27880.28
	51	4800	34771.30
	52	4800	42179.14
	53	4800	50142.58
	54	4800	58703.27
	55	4800	67906.02
	56	4800	77798.97
	57	4800	88433.89
	58	4800	99866.44
	59	4800	112156.42
	60	4800	125368.15
	61	4800	139570.76
	62	4800	154838.57
	63	4800	171251.46
	64	4800	188895.32
	65	4800	207862.47
	Total value accumulated is		207862.47
	Withdrawal is for 20 years at		20389.69