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Use these factors to answer questions n i PV$ 1 FV$1 PVA FVA 4 7% 0.76290 1.31080 3.38721 4.4399 6 6% 0.70496 1.41852 4.91732 6.9753 72 0.50% 0.69830 1.43204 60.33951 86.4089 1. You want to have $37,000 at the end of 6 years to buy a new car. How much should you save each month to achieve your goal if you can earn 6%? $_ _(round to nearest dollar) 2. You want to buy a $37,000 car today and will be making monthly payments for the next 6 years. What is your car payment if your borrowing rate is 6%? $_ (round to nearest dollar) 3. You accepted a job offer with a local company that has offered to give you a signing bonus of $2,500 or a $3,000 bonus in 4 years (guaranteed). Your current investment rate is 7%. What is the best economic decision, take the bonus today or wait 4 years? 4. You plan to invest $2,000 every year for the next 4 years. What will be the value of your investment at the end of the 4 years if you can earn 7% annual interest? $ _(round to nearest dollar) 5. Your grandparents have decided to give you $12,000 but they want to wait 4 years to give it to you (after you graduate). Assuming your grandparents are earning 7% annually, how much do they need to invest today so that have the money to give you in 4 years? $_ _(round to nearest dollar)

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