Question: Solve each of the following problems using the formulas for compound interest, the effective rate of interest, and the present and future values of annuities.

Solve each of the following problems using the formulas for compound interest, the effective rate of interest, and the present and future values of annuities. Show your work, in particular how you start the problem: which equations you are using, and where you are putting the variables.

Maria is now 53, is currently employed by a firm that guarantees her a fixed retirement bonus of $50,000. If Maria is planning to retire at age 68, What is the present value of that bonus if the rate of return on money is expected to be 3% per year for the next 15 years?

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