1. An annuity-immediate pays $100 per year total, in quarterly installments. The annual effective interest rate is 5%. What is the accumulated value of this annuity at the end of two years?
2. Al Rosen invests $16,000 in a mint condition 1952 Mickey Mantle Topps baseball card. He expects the card to increase in value 9 percent per year for the next 10 years.
How much will his card be worth after 10 years? Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods.