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1 Carla Lopez deposits $2,500 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account? 2 An ATM with a service fee of $2 is used by a person 100 times in a year. What would be the future value in 10 years (use a 3 percent rate) of the annual amount paid in ATM fees? 3 If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that amount over 10 years if the funds were deposited in an account earning 3 percent? 4 A financial company that advertises on television will pay you $60,000 now for annual payments of $10,000 that you are expected to receive for a legal settlement over the next 10 years. What is the present value of this assuming the time value of the money at 10%? 5 Brenda plans to reduce her saving (that is, she will spend more) by $50 a month. What would be the foregone future value of this reduced saving over the next 10 years? (Assume monthly cash flows, and an annual interest rate of 4 percent.)