1. Warren Buffet has been earning an annual rate of return of 19.7% since he started his investing company. Assume that Londo Mollari put a one-time only $10,000 under Buffet’s management in Year 1970, how much money would he have by Year 2017?
a. below $10,000,000.
b. between $10,000,000 and $20,000,000.
c. between $20,000,000 and $30,000,000.
d. between $30,000,000 and $40,000,000.
e. more than $40,000,000.
2. You are saving for retirement. To live? comfortably, you decide you will need to save $ 1 million by the time you are 65. Today is your 24 th ?birthday, and you? decide, starting today and continuing on every birthday up to and including your 65 th ?birthday, that you will put the same amount into a savings account. If the interest rate is 8 %?, how much must you set aside each year to make sure that you will have $ 1 million in the account on your 65 th ?birthday? The amount to deposit each year is ?$ _. ?(Round to the nearest? dollar)