1.Calculating present and future values: Use future or present value techniques to solve the following problems.

a. If you inherited $55,000 today and invested all of it in a security that paid a 5 percent rate of return, how much would you have in 35 years?

b. If the average new home costs $300,000 today, how much will it cost in 12 years if the price increases by 8 percent each year?

c. You think that in 18 years, it will cost $206,000 to provide your child with a 4-year college education. Will you have enough if you take $70,000 today and invest it for the next 18 years at 5 percent?

d. If you can earn 5 percent, how much will you have to save each year if you want to retire in 45 years with $1.5 million?