W Example 5: Bonnie Depp proposes to sell her farmland for $250,000 and invest the proceeds in stocks. She expects the investment to pay $18,000 next year and she expects this amount to grow at 4% every year subsequently forever. What is the annual percentage rate on the investment? HW Example 6: (a) A college student, Amy, decides to fund a retirement account with $2000 per year for 8 years, with the first deposit made one year from today. The rate of return will be 10%. How much will she have in her account when she retires in 40 years? PV = PMT = I= N= FV8 = This will grow to in 32 years (40 years from now)