1.You know you are going to complete education, bachelors and masters in 7 years. You know this in your heart and mind. You are sure of it.You plan to buy yourself a nice car at that time and you are sure the price of the car at that time will be $45,000.You are hoping that the gifts from your grandmother will give you what you need.How much should you ask her to give you every year?She needs to prepare her finances, so you need to wait to the end of the year to receive your incentives from her.Interest rate is 8% compounded annually.

2.Your grandmother gives you $30,000 today.What interest rate provides you the money you need to buy the car at graduation in the previous problem?

3.You plan to move to New York when you graduate so you don't need a car at graduation.However, you want to buy a car when you return to LA and buy a brand-new red Corvette.How many years does it take you to triple the money your grandmother generously gave you in the previous problem (#3), assuming an annual interest rate of 10%, so that you can your Corvette dream car?