1) Retirement Investment Advisors, Inc., has just offered you an annual interest rate of 4.7 percent until you retire in 40 years. You believe that interest rates will increase over the next year and you would be offered 5.3 percent per year one year from today. If you plan to deposit $14,500 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?
2) You plan to save $5,400 per year for the next 12 years. After the last deposit, you will keep the money in the account for 5 more years. The account will earn an interest rate of 5.7 percent. How much will there be in the account 17 years from today?
3) If you earn an annual interest rate of 9.7 percent, how many years will it take to double your money?