1. Lisa Simpson wants to know how much money she would have to deposit in an...

1. Lisa Simpson wants to know how much money she would have to deposit in an account paying 10% interest annually at age 25 in order to have a million dollars at age 65?

2. Bart Simpson, age 8, wants to be a millionaire by the time he is 40 by making annual deposits beginning immediately in an investment fund paying 12% annually. How large must Bart’s annual deposit be?

3. Homer Simpson is embezzling money from Burns Electric and plans to be able to deposit $20,000 each year for the foreseeable future in an off-shore account paying 8% annually. How many deposits does Homer have to make in order to have a million dollars (round your answer up)?

Expert Solution

jeff jeffy answered 2 years ago

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