Please answer 86, the highlighted question.

at the same rate. How much will the investments be worth at the end of 6 years if the average increase in the stock market is (a) 8%? (b) 5%? (c) 3%? 4- Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8% of his annual salary into the account for 35 years before he retires. His first year's salary is $75,000, and he 86 expects the salary to grow 6% each year. How much will be in his account after he makes the last deposit? What uniform amount can he withdraw from the account for 30 years beginning one year after his last deposit? Contributed by Paul R. McCright, University of South Florida 4- A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to accumulate $1 million in the account by the time she retires from work in 40 years. The bank manager 87 estimates she may expect to receive 6% nominal annual interest, compounded quarterly, throughout the 40 years. The engineer believes her income will increase at a 5% annual rate during her career. She