1) The risk free rate is 8%. You will deposit $600 in the bank each year from t = 13 to t = 28. After that you will let the money sit in the bank until t = 38. At t = 38 you will withdraw $2,000. You will then let the money sit in the bank until t = 48. What is your account balance at t = 48? Solve this in 3 ways. First, by using the PV of an annuity formula to discount the 16 deposits back to t = 12 and then future valuing that amount 26 periods forward. Then subtract off $2,000 from this value, and then future value this result forward another 10 years. Second, by using the PV of an annuity formula to discount the 16 deposits back to t = 0 and then future valuing that amount 38 periods forward. Then subtract off $2,000 from this value, and then future value this result forward another 10 years. Third, by using the conservation of money approach: PV(deposits) = PV(withdrawals) + PV(final balance)