WEEK THREE

1. (Future value) Selma and Patty Bouvier are twins, and both work at the Springfield DMV. They decide to save for retirement, which is 35 years away. They'll both receive an annual return of 8 percent on their investment over the next 35 years. Selma invests $2,000 per year at the end of each year only for the first 10 years of the 35-year periodfor a total of $20,000 saved. Patty doesn't start saving for 10 years and then saves $2,000 per year at the end of each year for the remaining 25 yearsfor a total of $50,000 saved. How much will each of them have when they retire?

a. Selma invests $2,000 per year at the end of each year only for the first 10 years of the 35-year period. How much will Selma have 10 years from now? $(Round to the nearest cent.) ANSWER:

b. How much will Selma have when she retires 35 years from now? $(Round to the nearest cent.) ANSWER:

c. Patty doesn't start saving for 10 years and then saves $2,000 per year at the end of each year for the remaining 25 years. How much will Patty have when she retires 35 years from now? $(Round to the nearest cent.) ANSWER:

2. (Spreadsheet problem) If you invest $900 in a bank in which it will earn 8 percent compounded annually, how much will your investment be worth at the end of 7 years? Use a spreadsheet to do your calculations. How much will your investment be worth at the end of 7 years? $(Round to the nearest cent.) ANSWER:

PLEASE ANSWER EACH (BOTH) QUESTION CORRECTLY AND FULLY!!!