BIOL 200 Study Guide - Midterm Guide: Savings Account
16 Jun 2015
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Document Summary
You are currently saving for a dream vacation to hawaii when you have completed your university studies in 3 years time. The total cost of the trip will be ,000 (includes flight and accommodations). You have opened a savings account solely for this vacation. The terms and conditions of this lottery are as follows: you will obtain ,500/month for 25 years. All funds obtained from the lottery will be placed in a savings account that yields 5. 00% compounded monthly. Exercise 3: present value of a lump sum amount. You are currently 21 years old and wish to retire a millionaire at the age of 55. Canada indicates that the interest rate will be constant at 3. 5% per annum (extremely unlikely) from now until then. You have just inherited a painting that is worth ,000 from a wealthy relative. You intend to keep it for 30 years and pass it on to your children.
