1. A couple thinking about retirement decide to put aside $4,000 each year in a savings plan that earns 7% interest. In 10 years they will receive a gift of $20,000 that also can be invested.
a. How much money will they have accumulated 30 years from now? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Accumulated savings $
b. If their goal is to retire with $900,000 of savings, how much extra do they need to save every year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Additional annual savings needed $
2. You deposit $2,900 in your bank account.
a. If the bank pays 3% simple interest, how much will you accumulate in your account after 9 years?
Future value $
b. How much will you accumulate if the bank pays compound interest? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Future value $