1. Construct a cash flow diagram that represents the amount of money that will be accumulated in 7 years from an initial investment of $20,000 now and $3,500 per year for 7 years at an interest rate of 8% per year. And calculate what the final amount after the 7 years will be.
2. Lisa Simpson wants to have 1,500,000 in 45 years by making equal annual end of year deposits into a tax deferred account paying 6.75 percent annually what would be Lisa's annual deposits be?