1. (A) Your parents will retire in 18 years. They currently have $500,000 saved, and they think they will need $2,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Show work.

(B) What's the future value of a 7%, 5-year ordinary annuity that pays $1,000 each year? If this was an annuity due, what would its future value be?

(C) An investment will pay $1,000 at the end of each of the next 3 years, $2,000 at the end of Year 4, $3,000 at the end of Year 5, and $5,000 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its future value?