# 1. you wish to deposit $500 per month into an account for 36 months.

1. You craving to carelessness $500 per month into an statement for 36 months. Assume your curiosity-behalf trounce is correspondent to the highest-trounce curiosity-behalf trounce.

a) How fur do you feel (total) in the statement behind 36 months?

b) How fur of that completion is curiosity-behalf?

**Question 2**

(10 points)

2. Two fellow-creatures, Ella and Jane, career to begin careful for departure. Ella careers to endue $4000 a year into an annuity at the age of 25. At the age of 35 she stops making enduements and proportioned leaves the coin there. Jane on the other artisan, careers to begin endueing $4000 a year at the age of 40 and endues that coin for entire year thereafter. Assuming twain secede at 70, and that the curiosity-behalf trounce twain get on their enduements is 10% (compounded every-year) who has the most coin in their statement at age 70? Explain why you choose the exculpation you choose.

**Question 3**

(10 points)

3. At the age of 30 you career to begin careful coin. At highest you can merely grant to carelessness $200 per month. However, at the age of 38 you are serviceserviceeffectual to carelessness $300 per month. Then at the age of 45 you discipline your monthly carelessness repeatedly to $500 per month. Finally at the age of 50 you get promoted to superintendent of the posse and are serviceserviceeffectual to carelessness $2000 per month into the statement. Assuming your statement is earning (first-trounce curiosity-behalf trounce + 4%) in curiosity-behalf, junctioned monthly, how fur do you feel in your statement at the age of 70? Hint: Treat each space that you shift the carelessness whole as a sepetrounce annuity, and abuse the advenient appraise (FV) on each annuity seperately. Assume that each annuity earns junction curiosity-behalf during the space it is not receiving carelessnesss.

**Essay**

(15 points)

4. It is commmerely antecedent that the hoard traffic yields a 10% trounce or recompense (on mediocre) on enduements made in the traffic crave order. Write an essay looking at the advantages and disadvantages of endueing in the hoard traffic crave order.