Jack wants to have $18,000 available 8 years from now to buy a new boat.If he assumes a growth rate of 5% per year, how much would he need to put away today in order to have this money in 8 years?

Jane wants to know more about the power of compounding and time value of money.She wants to estimate how much an investment of $10,000 would grow in 5 years if she earned an interest rate of 5%, and contrast this with how much she would have earned if there was no compounding involved.What is the difference between what she would earn with simple interest vs compound interest in this example?