To what amount will $4,900 invested for 8 years at 9 percent com accumulate? pounded annually 1. 2. Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty r decide to save for retirement, which is 35 years away. Theyll both receive an annual return of 7 percent on their investment over the next 35 years. Selma invests $ 1,600 per y at the end of each year only for the first 10 years of the 35-year periodfor a total of $ 16,000 saved. Patty doesn't start saving for 10 years and then saves $1,600 per year at the end of each year for the remaining 25 yearsfor a total of $ 40,000 saved. How much will each of them have when they retire? ear 3. Mr. Bill S. Preston, Esq., purchased a new house for $90,000. He paid $25,000 upfront and agreed to pay the rest over the next 15 years in 15 equal annual payments that include pri payments plus 13 percent compound interest on the unpaid balance. What will these equal payments be? Don Draper has signed a contract that will pay him$ 80,000 at the beginning of each year for the next 6 years, plus an additional $ 100,000 at the end of year 6. If 8 percent is the appropriate discount rate, what is the present value of this contract? 4