1. Currently you have $887,921 in your IRA account, and want to retire when its balance becomes $3 million. If you can earn 10% p.a. return, in how many years can you retire?
2. Silver Corporation agrees to pay an employee $6,000 a year for 20 years beginning twelve years from today and decides to fund the payments by depositing one lump sum in a savings account today. How much should the company deposit assuming the savings account will pay interest at an annual rate of 4%?
$50,931
$52,968.
$55,021.
$58,958.