1. when Sara was born her grandmother deposit $250 in a saving account earning a modest 4% interest annually. Not to be outdone, Sara's father deposited $1,000 on each of her birthdays for 13 years in the same account. When Sara turns 13, how much money will she have in the savings account?

2. Dressy, Inc. wants to purchase a sewing machine that will help generate annual profits for the company. In the first year, the profit will be $7,000. In the second year, $8500. In the third year $6400. After the third year, the machine will be useless and can only be thrown away. What is the maximum purchase price Dressy should pay for the sewing machine if it wants to earn at least a 5% rate of return on the investment?

3. what will a $4000 investment today be worth in ten years, assuming a 9% rate of return?