Task: Maria received an inheritance of $750,000 today
1. If she invest it at 8% compounded annually and takes nothing out, how much will she have at the end of 20 years?
2. If she take out $50,000 to but a car and invest the remainder at 8% compounded annually and takes nothing else out, how much will she have at the end of 20 years?
3. If she invest it at 8% compounded annually and takes out $75,000 today and $70,000 at the end of every year thereafter. How much will she have at the end of 20 years?
4. If she invest it at 8% compounded annually and takes out $75,000 today and $70,000 at the end of every year thereafter, when will she get the last payment?
5. What rate of interest would she need to take out $75,000 today and $70,000 at the end of every year for 20 years?