a. You decide to invest $20,000 today in your favorite video game company stock. The stock is expected to grow at a rate of 10% per year for 20 years. When you sell the stock in 20 years, how much will it be worth in terms of TODAY's spending power (assume a 4% rate of inflation). (You want to know how many rib-eye steaks you will be able to buy in 20 years when you sell the stock.

	$73,590
	$20,000
	$161,246
	$61,407

b. How much must you invest per month in order to have $1,000,000 20 years from now? Assume a 9.5% annual rate of interest with monthly compounding.

	$1,405
	$527
	$29,294
	$150,692

c. You want to have the equivalent of $700,000 (in terms of today's spending power) when you retire in 30 years. Assume a 3% rate of annual inflation. If you can earn 10% annually, how much do you have to invest per year in order to have your full amount of money needed at retirement?

	$21,230
	$85,651
	$7,856
	$10,329

d. Given a payment of $3,000 per year for 20 years and a 7% annual discount rate, what is the present value?

	$3,000
	$31,782
	$64,443
	$40,219

e. How much can you borrow if you are willing to make payments of $1,190.50 per month (at 6% annual rate) for 30 years?

	$198,565
	No solution. Cannot compute this.
	$133,433
	$150,000

f. You wish to have $1,000,000. You will invest $600 per month, earning 8% per year. How many months until you reach $1 million in total value?

	375
	358
	No solution
	180

Please answer each part. Thank you!