1.Ricky is 35 years old and wants to retire when he’s 63 years old. He opened an IRA that pays 3.2% interest compounded monthly. If he deposits $100 per month, how much will he have in the IRA at retirement? 2.Janelle just graduated high school and is now able to start her own Roth IRA. She wants to retire at age 60 with $1,800,000 in the IRA. If the account interest rate is 8.5%, how much will she need to deposit monthly to make that happen?

3.Pete is retiring after 27 years at a bank. His company is offering a monthly retirement benefit of $55 for each year of service. How much will his monthly pension be?

4.Martina’s employer offers an annual pension benefit calculated by multiplying 2.35% of the career average salary times the number of years employed. Here are Martina’s salaries over the last 24 years of employment:

28,800 29,300 30,250 31,000 35,500 42,000 45,000 50,000
28,800 29,900 30,350 35,000 35,700 43,000 48,000 52,000
29,210 29,900 30,450 35,000 38,000 43,900 48,800 52,000

a. What is Martina’s career average salary?
b. What is Martina’s annual pension under this plan?
c. What will be Martina’s monthly pension benefit be to the nearest penny?

5.Rose has a current cash value in her policy for $8,260. If the premium is $97 per month, for how many whole months can the cash value be used to pay the premium?