James deposited $150 at the beginning of each month for two years into his savings account. For the next four years he did not make any more deposits, leaving the money in the account. The bank charges 4% interest compounded monthly.

What will the balance be after 12 years?

If you need $8000 to travel to Europe after you graduate in 4 years.  How much would your monthly deposits need to be if your account earns interest at 5% compounded monthly?

Jo Anne deposited $1,500, at the BEGINNING of every six monthsfor 12 years, in an account at her credit union. If the accountpaid 6% interest, compounded semiannually, use Table 12-1 from yourtext to find the future value of her account.

$50,549.75

$51,815.72

$51,930.92

$53,188.89

A trust fund is set up to make payments of $1320.00 at the end of each month for seven years. Interest on the fund is 7.28% compounded monthly.

1. 1. How much money must be deposited into the fund?
   2. How much will be paid out of the fund?
   3. How much interest is earned by the fund?