3. Ali and Maggie are identical twins with very different investment philosophies. Maggie decides to start saving early and begins saving $200/month at age 21. Ali waits to start saving until she is 41. They both believe they can get 8% return on their investments. How much does Ali need to save per month to have as much as Maggie when they plan to retire at 71? Please show your work.

4. You are a sports agent for Chase Elliott, a NASCARs most popular driver. He drives for Hendrick Motorsports, one of NASCARs leading teams. Hendrick has offered your client a 4-year contract starting at $12.0 million per year and increasing by 8% per year. While Chase is satisfied with the compensation, he wants different terms. He wants to take a lump-sum payment upfront instead of the annual payments. You believe the appropriate discount rate is 10%. What would you tell Chase the present value of his impending contract is? Please show your work.