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A. Jamie Lee needs to save a total of $5,000 in order to get started in her cupcake caf venture. She is presently depositing $1,250 a year in a regular savings account. Calculate the future value of these deposits. B. Assuming that she leaves her emergency fund of $1,000 untouched, how much will her emergency fund be worth? C. What if Jamie Lee had a relative that could give her money now that she could invest? What is the minimum amount she would need now to ensure that she had $5,000 when she wanted to open the cupcake caf? D. As Jamie Lee is planning ahead for operating the cupcake caf, she calculates that she will need $29,000 per year in salary. What is the value of five years of salary when the cupcake caf opens? (Assume that she will take the salary as a one-time payment each year.) Use the table below and Exhibit 1-A, Exhibit 1-B, Exhibit 1-C, and Exhibit 1-D to calculate the balances of the information provided above. Assume that the time period for each scenario is 5 years, and the interest rate is 2%. Answer is complete but not entirely correct. A. Future Value of a Series of Deposits Future Regular deposit amount times Future value of annuity factor equals value amount $ 1,250.00 5.2040 $ 6,505.00 B. Future Value of a Single Amount Current amount times Future value factor equals $ 1,000.00 1.1041 = C. Present Value of a Single Amount Future amount desired times Present value factor equals $ 5,000.00 0.9057 D. Present Value of a Series of Deposits Regular amount to be withdrawn $ 29,000.00 Future value amount $ 1,104.10 Present value amount $ 4,528.50 Present value times of annuity factor equals Present value amount S 4.7135 136,691.50

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