1.Suppose you want to have $800,000 for retirement in 35 years. Your account earns 8% interest.

a) How much would you need to deposit in the account each month? = $

b) How much interest will you earn? = $

2.Inflation causes things to cost more, and for our money to buy less (hence your grandparents saying "In my day, you could buy a cup of coffee for a nickel"). Suppose inflation decreases the value of money by 2% each year. In other words, if you have $1 this year, next year it will only buy you $0.98 worth of stuff. How much will $100 buy you in 10 years? = $