15. Calculate how much simple and compound interest Kevin would earn on his $5,000, invested for 40 years at 5% per year. What is the value of the compounded interest? What would the total value (FV) of each investment be in 40 years? 16. Calculate how much simple and compound interest you would earn on $2,000, invested for 15 years at 4% per year. What is the value of the compounded interest? What would the total value (FV) of each investment be in 15 years? 17. Calculate how much simple and compound interest you would earn on $6,000, invested for 25 years at 3%% per year. What is the value of the compounded interest? What would the total value (FV) of each investment be in 25 years? 18. Calculate how much simple and compound interest you would earn on $5,000, invested for 30 years at 7% per year. What is the value of the compounded interest? What would the total value (FV) of each investment be in 25 years? 19. What two factors will result in the highest impact of compounding? 20. Using the formulae provided, verify the value of Kevin's $5000, invested with an annual rate of return of 10.6% 21. What does "compounded annual rate of return" mean? 22. Looking at Jake and Larry (p. 103), what factors influenced their overall savings accomplishments? 23. What impact does inflation have on your accumulated savings? 24. Rearranging our equation for FV with compounded interest, we find that PV=FV/(1+r)' What was Kevin's $1,592,000, 40 years from now, worth in today's dollars (hint: Inflation - 4%) 25. Inflation drag is one major concern when considering investment growth and value. What is another major consideration? What tools are available to mitigate this concern