1. If an employee was able to invest $18,000 per year in a retirement account at a rate of return of 12% per year, how many years will it take the retirement account to be worth $1.5 million?

2.The Ferrari FX super car is expected to be available by October 2017. The cost is $985,000 and a $100,00 deposit is required now to make a booking. Assume a buyer pays the $885,000 balance 3 years after making the $100,000 deposit. At an interest rate of 10% per year, what is the effective total cost of the super car in year 3?