1. (The Sailboat Problem) You turn 39 today and plan to retire on your 50th birthday. On your 50th birthday, you will buy a sailboat and sail around the world. You figure that you will be able to invest $700 a month starting on your 40th birthday and ending one month prior to your 50th birthday. You project that the interest rate for your investment will be 0.17% per month. How much money will you have when you are 50 to buy a sailboat? Note: you will be investing for 10 full years. At 12 payments per year, you will be making 120 payments. You could use brute force and calculate the future (year 50) value of all 120 payments and then add them up, or you could use the annuity formula as follows: a) Use the annuity formula to convert these 120 payments into equivalent value as of one month prior to your 40th birthday. b) Now convert the number that you calculated in part (a) into equivalent value as of your 50th birthday. This gives you the amount that you will have available when you are 50 to buy the sailboat.