Question: Please provide a step by step explanation for each question answered. And also the computing of computations. 1) Assume you have been putting $1,000 into

Please provide a step by step explanation for each question answered. And also the computing of computations.

1) Assume you have been putting $1,000 into a savings account on every birthday since your twentieth birthday. The account pays an interest rate of 3%. How much money will be in the account immediately after your retire at your birthday 55?

2) Assume that your parents wanted to have $35,000 saved for college by your 17th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 8% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $10,000 saved just in case, how much more would they have to save each year to reach their new goal?

3) Assume that Social Security promises you $80,000 per year starting when you retire 25 years from today. If your discount rate is 7%, compounded annually, and you plan to live for 25 years after retiring (so that you will receive a total of 26 payments including the first one), what is the value today of Social Security's promise?

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