1) An employee contributes 5 percent of her salary to her 401(k) plan and her employer contributes another 2 percent. The employee earns $120,000. If the employee earns 8 percent on all funds invested each year and her salary does not change, how much will she have in her account in 30 years?

A) 5951,579

B) None of the listed

C) $955,589

D) $952,830

2) A bank has assets $10 million, liabilities $8 million, and stockholder's equity $2 million. DA-10.5 and D|=5.5. The bank wishes to hedge the balance sheet with T-bond futures with current price $90,000 and duration 9.5 years. What position should this bank take on the futures to establish macro-hedge and how many contracts are necessary if interest rate increase is expected?

A) Buy 71 contracts

B) Buy 94 contracts

C) Sell 76 contracts

D) Sell 67 contracts