1. Gene wants to have $360,000 in his investment account 20 years from today. Matt also wants $360,000 in his investment account but he is only willing to wait 15 years. How much more would Matt have to deposit today as compared to Gene if they both are to reach their goals and they both earn 15 percent on their investments?
a. $18,496.78
b. $20,826.63
c. $23,610.94
d. $22,245.91
2. Six years ago, you convinced your son to deposit $1,300 in a savings account at the bank that will pay 5.25 percent interest. Currently, he is itching to spend that money. How much more money will he have if you can convince him to wait another year to withdraw his savings rather than withdrawing the funds today?
a. $79.57
b. $98.25
c. $92.78
d. $71.83