(1) You want to buy an Accura Integra on your 27th birthday. You have priced these cars and found that they currently sell for $25,000. You believe that the price will increase by 10% per year until you are ready to buy. You can presently invest to earn 14%. If you just turned 20 years old, how much must you invest at the end of each of the next 7 years to be able to purchase the Accura in 7 years?

(2) On January 1, 1993, a graduate student developed a 5-year financial plan that would provide enough money at the end of her graduate work (January 1, 1998) to open a business of her own. Her plan was to deposit $8,000 per year for 5-years, starting immediately, into an account paying 10% compounded annually. Her activities proceeded according to plan with the following exceptions; at the end of her third year she withdrew $5,000 to take a European holiday, at the end of her fourth year she withdrew $5,000 to buy a used Saab, and at the end of the fifth year she had to withdraw $5,000 to pay to have her dissertation typed and bound. Her account, at the end of the fifth year, was less than the amount she had originally planned on by how much?