a. You are graduating from college at the end of this semester and after reading the The Business of Life box in this chapter, you have decided to invest $5900 at the end of each year into a Roth IRA for the next 44 years.If you earn %6 percent compounded anually on your investment, how much will you have when you retire in 44 years? How much will you have if you wait 10 years before beginning to save and only make 34 payments into your retirement account?

b. Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $8369.45 that will pay them $1000 per year for 15years. They don't have the slightest idea what return they would be making on their investment of $8369.45. What rate of return would they be earning?

c. Determine the present value of an annuity due of $8,000 per year for 25 years discounted back to the present at an annual rate of 9 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 14%? If the annual discount rate is 9 % the present value of the annuty due is ?