1. Option 1: Suppose you want to be a millionaire before you retire at age 50. How could you reach that goal? This is the question, John, an 18 years old college student, is faced with as he plans his future. Here are his options.

(Hit: Deposit a one time lump sum into an investment account and let it sit for 32 years.)

i) Assuming that the investment account earned 9.8% interest, compounded monthly, how much would John have to deposit at the start to reach his goal?

ii) Suppose that John had only $6000 to invest at the beginning, how old would John be when that investment reaches $1,000,000?

iii) Suppose again that John had only $6,000 to invest at the beginning, what interest rate would be required to meet his goal at age 50?

Note: please turn in all the exercises the following (step by step).