(1) You have just made your first $5,300 contribution to your retirement account. Assume you earn an 11 percent rate of return and make no additional contributions.

(a) What will your account be worth when you retire in 42 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Future value = $ ______

(b) What if you wait 10 years before contributing? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Future value = $ ______

(2) Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost, because you just received an offer in the mail to transfer your $12,600 balance from your current credit card, which charges an annual rate of 20.4 percent, to a new credit card charging a rate of 11 percent.

(a) How much faster could you pay the loan off by making your planned monthly payments of $255 with the new card? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Number of months? _____

(b) What if there was a 2 percent fee charged on any balances transferred? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

Number of months? _____