Name: __________________________ Date: __________________________

MCF3M – The Sum of an Annuity (aka RAIN Formula)

	I am going to continue with my habits of assigning homework sheets.  This one, however, I am going to collect on Monday.  Please remember that your Test #2 is on Wednesday

1) Ericka gets a new job and decides to save $20 per week from it for the next 3 years.  She is able to invest at 7.8% compounded weekly.  How much money will she have at this time?

2) Adam W. is a high roller and needs to have $90 000 to purchase himself a luxury automobile in the next 4 years.  If he saves each day, at 7.3% compounded daily, how much money must he save?

3) Rather than go to Tim Horton’s every day, where you would spend $3, Amanda O. decide to save it each day at 5% interest compounded daily for the next 30 years (until you retire).  How much money will she have if avoids coffee each morning?

4) Evan begins working and is able to save $60 per month for the next year, which he invests at 6% compounded monthly.  After one year, he gets a raise and (of course) increases his investment to $70 for the next two years after that, before finally getting his dream job and being able to invest $100 per month for the next seven years (all of this is at 6% compounded monthly).  If you assume that the money that Evan already saves keeps gaining interest, how much money will he have?  (hint: set this up as three different questions)