You must show your work for credit. Simply giving the final answer is not sufficient; you must explain and show how you arrived at each answer. Ignore all taxes in your work.

1. After graduation, you plan to work for Donalds Fashion Co. for seven years and then start your own business. You expect to save and deposit $10,000 a year for the first three years (t=1 through t=3) and $14,000 annually for the four years after (t=4 through t=7). The deposits are made at the end of each year, with the first deposit being made a year from today. In addition, your grandfather just gave you a $40,000 graduation gift which you will deposit immediately (i.e. t=0). If the account earns 8% compounded annually, how much will you have saved when you start your business seven years from now?