1.If you deposit $250 now (n = 0) and $900 three years from now (n = 3) in a savings account that pays 9% annual interest, how much would you have after 10 years?
2.Part of the income generated by an ice cream machine is saved to purchase a new machine in the future. If $6,000 is deposited annually at 4.5% interest, how many years must the current machine last before a new machine costing $50,000 can be purchased? The first deposit will occur exactly one year from now.