Old Time Savings Bank pays 8% annual interest rate on its savings accounts. If you deposit $2400 in the bank and leave it there. Assume bank pays annual compounded interest. How much interest will you earn in the first year? How much interest will you earn in the thrid year? How much interest will you earn in the 8th year? [Please round your answer to the nearest whole number]

Multiple Choice

• $192;$224;$329

• $192;$242;$329

• $192;$242;$355

• $192;$224;$355

Charlie Stone wants to retire in 20 years, and he wants to have an annuity of $2000 a year for 19 years after retirement. Charlie wants to receive the first annuity payment at the end of the 20th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity?

Multiple Choice

• $2598.69

• $2486.78

• $2735.46

• $3009.01