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1) A) Mary Kay has contributed $150 at the end of each month into her company's retirement fund for the past 20 years. In addition,

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1) A) Mary Kay has contributed $150 at the end of each month into her company's retirement fund for the past 20 years. In addition, the company has matched her contributions for the past 10 years. If the account has earned interest at the rate of 4.5% over the 20- year period, find how much Mary Kay now has in her retirement account. B) Rosalee invested $24000 in a mutual fund account 5 years ago Today her investment is worth $34,616. Find the effective annual rate of return of her investments. C) In 1980, the annual rate of inflation was 13.5%. Suppose in 1980 a person had an annual salary of $25,000. If this rate of inflation was consistent throughout the decade, what would the person's salary need to be in 1989 to have the same purchasing power as the 1980 salary? Why do you think that the federal government aggressively pursued lowering the inflation rate during the decade of the 1980's? YOU MUST SHOW ALL WORK, WHEN USING A FORMULA, MAKE SURE YOU SHOW THE VALUES THAT YOU INPUT INTO THE FORMULA 1) A) Mary Kay has contributed $150 at the end of each month into her company's retirement fund for the past 20 years. In addition, the company has matched her contributions for the past 10 years. If the account has earned interest at the rate of 4.5% over the 20- year period, find how much Mary Kay now has in her retirement account. B) Rosalee invested $24000 in a mutual fund account 5 years ago Today her investment is worth $34,616. Find the effective annual rate of return of her investments. C) In 1980, the annual rate of inflation was 13.5%. Suppose in 1980 a person had an annual salary of $25,000. If this rate of inflation was consistent throughout the decade, what would the person's salary need to be in 1989 to have the same purchasing power as the 1980 salary? Why do you think that the federal government aggressively pursued lowering the inflation rate during the decade of the 1980's? YOU MUST SHOW ALL WORK, WHEN USING A FORMULA, MAKE SURE YOU SHOW THE VALUES THAT YOU INPUT INTO THE FORMULA

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