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Instructions: Read each item below. Use the PVIF and FVIF tables and the simple interest formula to help answer the items below. 1. Marley is going to put $4,000 in a savings account at a local bank. The savings account will earn Joel 6% annually, simple interest. How much will Joel have in his account if he leaves the money there for 4 years? 8 years? 2. If Marley had put the $4,000 in an account in which the interest compounded annually, how would his account balance differ from the balances in #1 (At 4 years and 8 years) Marcus has $6,000 available for an investment. If he can invest this amount at 5%, compounding annually, what will his account balance be at the end of 3 years? Five years? 12 years? 3. 4. Sally is planning on purchasing a new RV five years from now. She would like to have $5000 to put down on the RV at the time of purchase. If the interest rate is currently 6%, compounding annually, how much must she invest now so that she will have the desired amount to put down on the RV in five years? 5. What would the present value of an account be if the future value is $15,000 and it has been compounding at a rate of 8% for the past 5 years? 6. What should Jeff be willing to invest now in order to have $30,000 in 11 years if his investment will compound at a rate of 9% annually. 7. Jordan would like to know the difference in account values if she: 1. Invested $12.500 for 4 years @ 6%, simple interest 2. Invested $12.500 for 4 years @ 6%, compounding interest

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