1.You inherit $286,000 today. Rather than spending it, you decide to invest it. If you earn 7% per year (compounded annually), how much money will you have in 39 years? Round to nearest cent.

2.If you invest $96 per month (starting next month) every month for 36 years, and you can earn 11% per year (compounded monthly), how much will you have at the end of 36 years? Round to the nearest cent.

3.The Powerball lottery jackpot reached $1.6 billion a few years ago. Assume the jackpot was to be paid in 25 annual installments of $64,000,000 per year (starting in year 1). An alternative to the installment plan was to receive a lump sum payment today. If the applicable discount rate was 8% per year, how large was the lump sum payment option? Round to the nearest cent.

4.Madison started investing $7 each week at the age of 18, in an account earning 6% per year compounded weekly (and continued to do so until she was 68). Brett waited until he was 38 to start investing $100 each month in an account earning 6% per year compounded monthly (and continued to do so until he was 68). Who will have more money when they are 68?