Accounting Principles I (ACC 111) Time Value of Money Homework Name 1) Your goal is to accumulate $1,000,000 in 35 years. You have the ability to invest at 7% compounded annually. How much should you invest today (one-time) to accomplish this goal? 2) A deposit of $1,000 is made on January 1, Year 1. The deposit will earn interest at a rate of 8%. How much will be accumulared on January 1 , Year 8 , assuming the interest is compounded: 3) You believe that it is more likely that UFOs exist than you will receive Social Security benefits. If you retired today, you would be comfortable living on $40,000 per year. Unfortunately, your golden years are 40 years away. If inflation is 3% per year for the next 40 years, how much would you need at that point to be as comfortable as an individual with $40,000 per year today