1. Debra Beach is a soda pop “addict” and wonders how much money she could accumulate if she stopped drinking soda pop and deposited the $125 per month she spends on the stuff into a savings plan. If Debra is 28 years old, what amount should she have at retirement, 42 years from now, if she deposited $125 at the end of each month and her savings plan earned 6.75% compounded monthly?
a $26,925.93
b $124,097.93
c $177,356.44
d $353,236.72
2. You deposited $600 in a savings account 15 years ago, earning 5% compounded quarterly. Today, you withdrew the entire balance of $1,264.31. What is the present value?
a $1,264.31
b $722.90
c $600
d $1,247.36