Problem 5: Calculating the Number of Periods/Present Value. You are trying to save to buy a new $78,000 Volkswagen. You have $10,000 today that can be invested at your bank. 5a. The bank pays 3.75% annual interest on its accounts. How long will it be before you have enough to buy the car? It will be years. 5b. Instead of depositing funds in the bank you decide to invest in a mutual fund that you believe will achieve a 7.32% annual rate of return. You want to buy the car in 15 years on the day you turn 35, how much must you invest today? I must invest _today. Problem 6: Calculating Future Values. You have just made your first $1,000 contribution to your individual retirement account (IRA). Assume you earn a 12% rate of return and make no additional contributions. 6a. When you retire in 32 years, the account will be worth $ 6b. If you wait 5 years before making your initial contribution, the account will be worth