1. If you invest $1,000 in a bank account paying 1% interest (about what Ally pays right now), how much will you have in 5 years?

a. What if interest is compounded quarterly instead of annually?

b. What if interest is compounded monthly instead of annually?

2. If you invest $10,000 in the market and expect a 5% annual return, how long do you expect it to take for your account to grow to $25,000?

3. You want to withdrawal $10,000 per year for 10 years starting next year. How much do you need in your account today if you expect a 3% annual return? Assume you will end with $0 in your account.

4. You want to withdrawal $10,000 per year for 10 years starting in 11 years. How much do you need to have in your account today if you expect a 3% annual return? Assume you will end with $0 in your account.

5. You want to withdrawal $10,000 per year for 10 years starting in 11 years. You will start saving today, and will make deposits into your account for 9 more years (10 total deposits). At the start of the 11th year, you will take your first withdrawal. How much do you need to save each year if you expect a 3% annual return? Assume you will end with $0 in your account.