Investment Class Average Return Small Stocks 17% Large Stocks 12% Long-Term Corporate Bonds 7% Long-Term Government Bond

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Investment Class
Average Return
Small Stocks
17%
Large Stocks
12%
Long-Term Corporate Bonds
7%
Long-Term Government Bonds
6%
US Treasury Bills
3%
Money Market
1%
Summer just turned 13 years old and is trying to save for a car.
She wants to have $4,100 saved up to buy a car on her
16th birthday. With her babysitting job, she can
save $100 per month. Is there any way that she can build up enough
money with the example investments? Show your work.
N
I/Y
PV
PMT
FV
James is saving up for the down payment on a house. He wants to
put 20% down, which means for the size house he wants he needs to
have $40,000. He would like to achieve this goal in 5 years. He has
refused to invest in stocks because he sees them as too risky for
this goal. After paying rent and other necessary expenses, James
can save $450 per month for his down payment. Is his goal of
$40,000 in 5 years achievable? Why or why not?
N
I/Y
PV
PMT
FV