Complete the attached worksheet. Please show all work
1. If Jim deposits $2000 in a money market account and it earns 3% (compounded annually) per year,
How much will he have in 8 years?
How much will he have if he earns 4% for 8 years?
How long will it take his money to double if he earns 4%? 6%?
How long would he have to leave it in the account (at 3%) in order to accumulate $10,000?
2. Vanessa wants to accumulate $18000 in her savings to return to graduate school in 6 years. Assuming she can earn 4.5% interest (compounded annually),
How much would she need to deposit today to reach her goal (one-time deposit)?
How much would she need to deposit each year (at the beginning of the year, aka "ordinary annuity") to reach her goal?
If she found a way to earn 6%, how much would her annual deposit need to be?