1. Your friend has a newborn child and her grandmother invests $10,000 into an account guaranteeing a 5% annual return. Approximately how much will the value of the account be in eighteen years, assuming all the interest is left in the account?

2. Rather than continuing to buy a $3 latte every day a recent college graduate decides to place $3 each day in a drawer and invest it in a mutual fund at the end of each year. One year from today, and each year thereafter she invests $1,095 in her account. If the account is expected to earn a 7% return how much would she have after 30 years of investing?

3. Suppose the individual in #2 (above) begins investment of the same amount into the above account age 40; how much would she have after 15 years of investing with the same 7% return?