As a part of your savings plan at work, you have been depositing $250 per quarter in a savings account earning 8% interest compounded quarterly for the last 10 years. You will retire in 15 years and want to increase your contribution each year from $1,000 to $2,000 per year, by increasing your contribution every four months from $250 to $500. Additionally, you have just inherited $10,000, which you plan to invest now to earn interest at 12% compounded annually for the next 15 years. How much money will you have in savings when you retire 15 years from now?

7. Calculating interest earned and future value of savings account. If you put $6,000 in savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future valur formula.) How much interest will you earn during the five years? If you put $6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?

Bob makes his first $700 deposit into an IRA earning 6.6%compounded annually on his 24th birthday and his last $700 depositon his 36th Birthday ?(13 equal deposits in? all). With noadditional? deposits, the money in the IRA continues to earn 6.6%interest compounded annually until Bob retires on his 65thbirthday. How much is in the IRA when Bob? retires?

An ambituos saver plans to deposit $1,000 in the bank starting 1quarter from now and wants to increase the deposits by $100 eachquarter for the next (5) years. Assuming the deposits earn 6%compounded quartely ,determine how much money will have depositedin the bank account at the end of five years.