1) How much will you have accumulated over a period of 40 years if, in an IRA which has a 10% interest rate compounded monthly, you annually invest: a. $1 b. $5.000 0. $10,000 d. Part (a) is called the cectfve yield of an account. How could Part (a) be used to determine Parts (b) and (c)? (Your answer should be in complete sentences free of grammar, spelling, and punctuation mistakes.) (Total of 15 points) 2) How much will you have accumulated, if you annually invest $5000 into an IRA at 8% interest compounded annually for: a. 10 year b. 20 years c. 50 years d. How long will it take to earn your rst million dollars? Your answer should be exact rounded within 2 decimal places. Please use logarithms to solve. (Total of 15 points) EXAMPLE: If you invest $1200 every year (P = 1200) for 3 years (t=3) at an interest rate of 5% (r = 0.05) compounded weekly (n = 52), then the first year's investment of $1200 would earn interest for 3 years, but then the next year, the next investment of $1200 would only earn interest for 2 years, and then the final investment of $1200 would only earn interest for 1 year. This lends itself to the following: 52 52(3) 1200 1+ 0.05 0.05 1- 1+ 52 52 C(1) = 0.05 52 1-| 1+ 52 = $3,981.74 You have to be sure not to round until the very end where you round to the nearest cent. (So be sure to keep as many decimal places as possible until the end, as you will be taken off for rounding before then.) For more information about round-off errors click on the link: http://mathworld.wolfram.com/RoundoffError.html