1. Suppose you deposited $10 at 5% interest into a savings account 20 years ago. How much would the investment be worth today with simple interest? With compound interest? What is the difference?
2. How much must you invest each year to have $50,000 in 17 years if you earn 6% annual interest?
3. How much must you invest now to have $50,000 in 17 years if you earn 6% annual interest?
4. Suppose that you get a job earning $35,000 per year when you are 22 years old. And, you are guaranteed a raise of 3% each year. How much money will you earn when you are 47?