AlaskaUSA has Money Market Accounts that earn r = 0.15% compounded monthly for accounts with over $2,500. Assume you have a windfall of $2500 to put in the account and you want to and are able to invest $100 per month.

1. How many years will it take you to obtain $10000 (in years and months)? _______________.

2. After $10,000, the account will now make r = 0.2%. Start with $10,000 and see how much longer it takes you to make $25,000 assuming you make the same investment per month... ___________.

3. One more, now the Money Market at $25,000 goes up to r = 0.25%. How much longer will it take to get to $50,000?_________.

4. How many total years and months total did it take to get to $50,000 with your investment? _______________.

5. How much have you invested during this time? (2500+100 times the total number of months in number 4)______________.

6. How much interest have you made? (50000 - the amount in number 5) __________________.

7. If inflation continues at 1.6% annually for the next number of years mentioned above, then how much money would you need to inflation proof your investment. (This means you don't necessarily make money because the interest you earn is the same as inflation.) (find the future value with PV of -2500, Payment of -100 and percent of 1.6, N is the answer above and P/Y is 1.) ____________.

8. Is this investment inflation proof?___________.