Question

You need $575 in 6 months for your auto insurance bill. If your investments earn 3% APR (compounded monthly), ), how much do you have to invest each month, starting next month, for 4 months, such that your investment will grow to just cover your auto insurance bill?

$140

$142

$144

$141

You plan to buy a house in 18 months.
The cost of the house at that time will be $300,000 .
How much do you have to invest each month, starting next month, for 12 months to exactly pay for the house if you r investments earn 2.00% APR (compounded monthly)?

$23,582

$22,675

$24,290

$24,525

$25,261

You plan to retire in year 10
Your retirement will last 20 years.
You want to have $60,000 each year of your retirement.
How much would you have to invest each year, starting in one year, for 6 years , to exactly pay for your retirement ,if your investments earn 5.00% APR (compounded annually)?

$101,704

$99,710

$96,861

$98,798

$94,961

Answer 1