1. Your parents will retire in 29 years. They currently have $390,000 saved, and they think they will need $2,050,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

%

2. How long will it take $300 to double if it earns the following rates? Compounding occurs once a year. Round your answers to two decimal places.

1. 5%.

   year(s)

2. 13%.

   year(s)

3. 19%.

   year(s)

4. 100%.

   year(s)

3. What is the present value of a $500 perpetuity if the interest rate is 9%? If interest rates doubled to 18%, what would its present value be? Round your answers to the nearest cent.

Present value at 9%: $

Present value at 18%: $