1. You have $87,500 saved today and want to purchase a new yacht when your money grows to $485,000. If you can earn 4 percent on your investments, how long do you have to wait to buy your yacht?
2. Assuming a 3.2 percent annual increase in the price of automobiles, how much will a new BMW cost you 4 years from now if today's price is $58,500?
3. What is the total future value six years from now of $450 received in one year, $750 received in two years, and $1200 received in six years if the discount rate is 6 percent?