Section PF.10 – Solutions to the Practice Problems

1. $41,645.91

2. $75,387.07

3.
a. $14,486.56
b. $10,000.00
c. $4,486.56

4.
a. $29,081.87
b. $18,000.00
c. $11,081.87

5.
a. $116,547.38
b. $72,000.00
c. $44,547.38

6.
a. $658.44
b. $158,025.60
c. $341,974.40

7.
a. $796.40
b. $286,704.00
c. $513,296.00

8. $349.53

9.
Amount Saved = $324,028.68
Lump Sum = $56,594.76

10.
Amount Saved = $33,149.49
Lump Sum = $27,149.53

11.
Amount Saved = $447,107.83
Lump Sum = $40,885.05

12. $76,634.11

13. $67,283.33

14.
a. $119,023.28
b. $118,973.37
c. $108,103.28
d. $83,093.37
e. Lucy’s account has more money overall and Lucy made more interest. Thus, Lucy made the best investment.

15.
a. $129,414.07
b. $136,686.39
c. $116,454.07
d. $93,486.39
e. Nick’s account has more money overall. Robert made more interest. When considering who made more money off of a smaller amount of money, Robert made the better investment