A20-year-old student wants to save $3 a day for her retirement. every day she places $3 in a drawer. at the end of each year, she invests the accumulated savings ($1,095) in a brokerage account with an expected annual return of 12%. how much money will she have when she is 65 years old? (we did this part in class)

The money she will be having when she is 65 years old is $1487261.89.

Explanation:

Annual savings = $3×365

                           = $1,095

Savings at the end of 65 years = $1,095×[(1 + 12%)^(65-20) - 1] / 12%  

                                                    = $1487261.89

Therefore, the money she will be having when she is 65 years old is $1487261.89.  

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.