BE6.5 (LO 3) Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years?
BE6.6 (LO 3) Steve Madison needs $250,000 in 10 years. How much must he invest at the end of each year, at 5% interest, to meet his needs?
BE6.7 (LO 2) John Fillmore’s lifelong dream is to own his own fishing boat to use in his retirement. He estimates that the boat he wants will cost $300,000 when he retires in 5 years. How much must he invest at an annual rate of 8% (compounded annually) to buy the boat at retirement?
BE6.8 (LO 2) Refer to the data in BE6.7. Assuming quarterly compounding of amounts invested at 8%, how much must be invested to have enough at retirement to buy the boat?
BE6.9 (LO 3) Morgan Freeman is investing $9,069 at the end of each year in a fund that earns 5% interest. In how many years will the fund be at $100,000?