1.)2.)

You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 65. Today is your 28th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 5%, how much must you set aside each year to make sure that you will have $1 million in the account on your 65th birthday? The amount to deposit each year is $. (Round to the nearest dollar.) You have an investment account that started with $3,000 10 years ago and which now has grown to $10,000. a. What annual rate of return have you earned (you have made no additional contributions to the account)? b. If the investment account earns 14% per year from now on, what will the account's value be 10 years from now? a. What annual rate of return have you earned (you have made no additional contributions to the account)? Your annual rate of return is 12.79 %. (Round to two decimal places.) b. If the investment account earns 14% per year from now on, what will the account's value be 10 years from now? The account's value in ten years will be $ (Round to the nearest cent.) Show transcribed image text