9. Many economists view a 3% annual inflation rate as "acceptable". Assuming a 3% annual increase in the price of automobiles, how much will a new Tesla cost you 8 years from now if today's price is $40,000?

10. You are looking at two savings accounts. One pays 5.25% (APR), with daily compounding. The other pays 5.3% (APR) with semiannual compounding. Which one would you choose? Why?

11. Suppose that you have decided to set aside $300 per month and invest in a retirement account. Assuming the investment account earns 1% a month (12% APR), how much money would you have in your retirement account by the time you retire at 65? Assume your current age is (i) 30 years; (ii) 35 years; (iii) 40 years; (iv) 45 years; and (v) 50 years.

12. Now let's work backwards. Assume that you will all live until 100 (a good news!), but will have to retire by 65 (a bad news^^). You estimate that you will need to draw at least $3,000 per month of living expenses out of your retirement account after you retire (assume no inflation). Suppose that your retirement account will keep earning 6% APR after you retire. If you want to ensure that your retirement account will not run out of money before the age of 100, how much should you have in your retirement account when you retire at 65?