One can solve for either the interest rate or the number of periods using the FV and the PV equations. The easiest way to solve for these variables is with a financial calculator or a spreadsheet.

Quantitative Problem 1: You deposit $2,200 into an account that pays 4% per year. Your plan is to withdraw this amount at the end of 5 years to use for a down payment on a new car. How much will you be able to withdraw at the end of 5 years? Round your answer to the nearest cent. Do not round intermediate calculations.

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Quantitative Problem 2: Today, you invest a lump sum amount in an equity fund that provides an 9% annual return. You would like to have $10,600 in 6 years to help with a down payment for a home. How much do you need to deposit today to reach your $10,600 goal? Round your answer to the nearest cent. Do not round intermediate calculations.

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