Question 7 (6 points) Your co-worker is considering opening a retirement account with an initial $2,500 contribution. Assuming your co-worker will earn a rate of return of 8% and makes no additional contributions, what will the account be worth in 40 years when they wish to retire? A How much less would the account be worth if your co-worker waits 5 years before contributing the initial investment? A/ Question 8 (6 points) Ginger Bread, Inc. invested $3.5 million earning 7% interest compounded annually for 8 years. How much interest did the company earn over this period of time? A Question 9 (6 points) Guers plc wants to have $40 million in cash to buy a rival company 2 years from today. The going conservative interest rate is 5%. How much does Guers need to deposit today in order to make a bid for the rival company in 2 years? A/