MTH 146

Review for Test #4

1. How many months must deposits of $2000 be made at the end of each month in order to
accumulate $100 000 at 6% compounded quarterly? ans = 44.8

2. When you retire, you hope to receive $1400 at the beginning of each month for 20 years.
If you plan for it today, at an interest rate of 24% compounded monthly, how much money do
you need now? ans =
$70 783.89

3. You want to have $300 000 in 25 years. To achieve this goal, how much would you have to
deposit at the end of every 3 months at 10% compounded semi-annually? ans =
$707.77

4. If $100 is deposited at the beginning of each week for 3 years in an account paying
0.25% compounded weekly,

a) what is the balance in the account after this time? ans = $15
659.02

b) how much interest was earned? ans = $59.02