1. You collect old model trains. One particular model increases in value at a rate of 6.5 percent per year. Today, the model is worth $1,670. How much additional money can you make if you wait 4 years to sell the model rather than selling it 2 years from now?
A. $196.67
B. $208.04
C. $241.79
D. $254.24
E. $280.15
2. Miley expects to receive the following payments: Year 1 = $60,000; Year 2 = $35,000; Year 3 = $12,000. All of this money will be saved for her retirement. If she can earn an average of 10.5 percent on her investments, how much will she have in her account 25 years after making her first deposit?
A. $972,373
B. $989,457
C. $1,006,311
D. $1,147,509
E. $1,231,776