(Compounding using a calculator and annuities due)

Imagine that Homer Simpson actually invested 150,000 8 years ago at a 16 percent annual interest rate. If he invests an additional 1,500 a year at the beginning of each year for 20 years at the same 16 percent annual rate, how much money will Homer have 15 years from now?

a. If Homer invested 150,000 8 years ago at a 16 percent annual interest rate, what is the future value of this investment 15 years from now?

b. If Homer invests an additional 1500 a year at the beginning of each year for 20 years at the same 16 percent annual rate, what is the future value of this investment 20 years from now?

c. How much money will Homer have 20 years from now?