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1. Rebecca Smith just graduated from college and received a job managing a ranch. Her salary will be $25,000 per year. If she is guaranteed

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1. Rebecca Smith just graduated from college and received a job managing a ranch. Her salary will be $25,000 per year. If she is guaranteed a 5% raise each year, what will her salary be in 23 years? 2. When you retire, you want to have a million dollars saved. If you plan to retire in 40 years, and you can receive 5% interest annually on a savings account, what is the fixed amount you have to save each year? 3. What would be the value of the annuity in question 8 if the company increased the payment by 3% each year? 4. Sam Crosby is a professional hockey player who is considering two contract offers. Contract A will pay him $6 million at the end of each of the next seven years. Contract B will pay him $5 million for the first three years and $7 million for the last four years. What is each contract's present value using an annual interest rate of 7%? Which contract is better

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