a. If starting at t≥ 1, increasing t by one year multiplies the present value by b. Set the initial deposit to $10k, the annual interest rate to 5%, and years to compound to 10. Increasing the present value from $10k to $12k will increase the future value in 10 years by: $ LA a larger present value an additional 1+r 1+r r

Suppose you inherit $100,000 at age 25 and immediately invested in a growth fund who’s annual rate of return average is 13%. Five years later, you transfer all proceeds from the scrubs fun into a long-term IRA that pays an average annual rate of 8%. Immediately you start making additional contributions of $7000 per year to the same IRA. Assuming continuous interest, steady interest rates, and a perfect record of making annualcontributions, how much is this IRA worth when you reach the age of 65? The formula that will need to be used is A = P e^r*t + D/r (e^r*t - 1). Hint: use the continuous interest formula to find the accumulated amount for the first five years, which is then the annual investment, P, into the IRA. 

In this problem: How much is the present value of monthly deposits of 500 in 8 years if the interest rate is 8% compounded monthly? What is the value of n that you will use in the formula?

Determine the present​ value, P, you must invest to have the future​ value, A, at simple interest rate r after time t. Round answer to the nearest dollar.   A=​$5,000​, r=8.2​%, t=5 years