1. A friend of yours has waited until their 40th birthday to decide to save for retirement. You tell them that it is a good idea to save now even if it would be better to start earlier. The friend plans to contribute $3,357 per year and earn 8% until they are 65. How much money will your friend have in their account at age 65?

2. A 20 year old friend decides to save $8 per day (365 day year). At the end of the year she moves her accumulated savings out of her checking accounting into a stock account earning 7% per year. How much will she have saved when she is 65 years old?