1. You receive a ?$7,000 check from your grandparents for graduation. You decide to save it toward a down payment on a house. You invest it earning 5% per year and you think you will need to have $14,000 saved for the down payment. How long will it be before the $7,000 has grown to ?$14,000?
2. Maxwell Foods established a trust fund that will provide $225,000 in scholarships each year forever. The trust fund earns a 4.63 percent rate of return. How much money did the firm contribute to the fund 20 years ago, assuming that only the interest income is distributed?