1. Financial analysts recommend investing 15% to 20% of your annual income in your retirement fund to reach a replacement rate of 70% of your income by age 65. This recommendation increases to almost 30% if you start investing at 45 years old. Mallori Rouse is 26 years old and has started investing $3,100 at the end of each year in her retirement account. How much will her account be worth in 20 years at 5% interest compounded annually? How much will it be worth in 30 years? What about at 40 years? How much will it be worth in 50 years?

Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.

20 years

30 years

40 years

50 years

2. Suze Orman wants to pay $1,400 semiannually to her granddaughter for 10 years for helping her around the house. If Suze can invest money at 6% compounded semiannually, how much must she invest today to meet this goal?

3. John Regan, an employee at Home Depot, made deposits of $790 at the end of each year for 5 years. Interest is 5% compounded annually. What is the value of Johns annuity at the end of 5 years?