Use the savings plan formula to answer the following questions.

At age $35$, you start saving for retirement. If your investment plan pays an $\mathrm{APR}$ of $6 \%$ and you want to have $\$ 2$ million when you retire in $30$ years, how much should you deposit monthly?

The following pairs of investment plan are identical except for a small difference in interest rates. Compute the balances in both accounts after $10$ and $30$ years. Discuss the difference. José invests $\$ 1500$ in an account that earns $5.6 \%$ compounded annually. Marta invests $\$ 1500$ in a different account that earns $5.7 \%$ compounded annually.

Refer to Google's statement of cash flows in Appendix A. What are its cash flows from financing activities for the year ended December 31, 2015? Enumerate the items and amounts.

All changes in noncash balance sheet accounts are fully explained on the spreadsheet when a spreadsheet for a statement of cash flows is prepared, Explain how these noncash balance sheet accounts are used to fully account for cash flows on a spreadsheet.

(a) state whether the problem relates to an ordinary annuity or an annuity due and then (b) solve the problem.

A couple has determined that they need $\$ 1.5$ million to establish an annuity when they retire in $25$ years. How much money should they deposit at the end of each month in an investment plan that pays $10 \%$ compounded monthly, so that they will have the $\$ 1.5 \mathrm{mil}$ lion in $25$ years?

Hamid recently graduated from college and now has a job that provides a retirement investment plan. Hamid wants to diversify his investments, so he wants to invest in four stock mutual funds and two bond mutual funds. If he has a choice of eight stock mutual funds and five bond mutual funds, how many different selections of mutual fund s does he have?

Which plan yields a greater return on an investment?

Plan A: 8.1% annual rate compounded quarterly

Plan B: 8% annual rate compounded continuously

The following pairs of investment plan are identical except for a small difference in interest rates. Compute the balances in both accounts after $10$ and $30$ years. Discuss the difference. Chang invests $\$ 500$ in an account that earns $3.5 \%$ compounded annually. Kio invests $\$ 500$ in a different account that earns $3.75 \%$ compounded annually.

Label the following headings, line items, and notes with the numbers 1 through 13 according to their sequential order (from top to bottom) for presentation on the statement of cash flows.

_____ k. "Cash flows from financing activities" title

A financial manager wants to invest up to $400,000 of his client's money in two investment plans. Plan A pays an annual interest rate of 6% and Plan B pays an annual interest rate of 8%. Although Plan B pays a higher interest rate, there is some risk involved. The manager and the client have agreed to invest at most 40% of the total in Plan B. The manager feels that in order to get the best return, the client should invest no less than$180,000. How much should be invested in each plan to maximize the return? Let x represent the amount invested in Plan A. Write an expression for the interest received from this investment.

A company uses a spreadsheet to prepare its statement of cash flows. Indicate whether each of the following items would be recorded in the Debit column or Credit column of the spreadsheet’s statement of cash flows section.

a. Decrease in accounts payable

(a) state whether the problem relates to an ordinary annuity or an annuity due and then (b) solve the problem.

How much money should a couple deposit at the end of each month in an investment plan that pays $7.5 \%$ compounded monthly so that they will have $\$ 800,000$ in $30$ years?

Devise a general investment plan for someone who wants to buy their first house and to start investing some money for retirement.

Copy the chart below, and for each investment option listed, give one advantage.

$$\begin{array}{|l|c|} \hline {\text { Investment Method }} & {\text { Advantage }} \\ \hline \text { Pension plan } & \\ \hline \text { Keogh plan } & \\ \hline \text { IRA } & \\ \hline \text { Roth IRA } & \\ \hline \end{array}$$