1) Danny has decided to retire once he has $1,500,000 in his retirement account. At the end of each year, he will contribute $8,000 to the account, which is expected to provide a annual return of 8.0%. How many years will it take until he can retire? (Round to the nearest year.)
42 years
32 years
38 years
36 years
40 years
2) Suppose Dannys friend, Hugh, has the same retirement plan, saving $8,000 at the end of each year and retiring once he hits $1,500,000. However, Hughs account is expected to provide an annual return of 10.7%. How much sooner can Hugh retire? (Round to the nearest year.)
6 years
8 years
5 years
7 years
4 years
3) After 25 years, neither Danny nor Hugh will have enough money to retire, but how much more will Hughs account be worth at this time?
$130073
$169363
$162869
$289671
$107938
4). Rick is jealous of Nathan is scheduled to retire before him, so Rick decides to make whatever end-ofyear contribution is neccessary to reach the $1500000 goal at the same time as Nathan.
If Rick continues to earn 8% annual interest,what annual contributuion must he make inorder to retire at the same time as Nathan?