You had a pay increase from $40,000 in 2012 to $42,000 in 2013. The inflation rate for 2013 was 3.5%. What was the percentage change in the nominal income? Did you beat inflation? What is the real income after the pay increase? If you put in a lump sum of $8,000 and you can earn 7% on the money for a period of 22 years, what is that amount worth at the end of the 22 years period? If you need $30,000 to buy a new car 7 years from now and assume you can earn 5% interest per year, how much do you need to set aside NOW in order to have the money available at the end of the period? You are not too far away from retirement and you need to have an income stream of $25,000 per year for 20 years. Assuming that you are an EXCELLENT investor and can earn 12% on your money each year, how much do you need to invest TODAY in order to have that income stream? If you add $2,000 per year to your IRA account for the next 40 years and assume you can earn 7% interest annually, what is the dollar amount you would have at the end of 40 years