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Gayle just turned 20 and receives a gift of $40,000 from her grandparents. Gayle plans...

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Gayle just turned 20 and receives a gift of $40,000 from her grandparents. Gayle plans ahead and would like to retire on her 55th birthday. Gayle would like to have $2 million saved by her retirement date, in order to support her lifestyle throughout her retirement years. Gayle opens an investment account and deposits the $40,000 gift into it. Gayle's investment 8 account earns an annual effective rate of 7%. a) (5 marks) How much will Gayle's $40,000 gift be worth by the time she turns 55? How much b) (10 marks) Gayle realizes that she will have to make additional contributions into her short of her $2 million goal will she be on that date? investment account in order to reach her retirement goal. She plans to make a deposit into the account each birthday starting today (her 20th birthday). She will make her last deposit on her 50h birthday. After her 50th birthday, she intends to stop making deposits and let all the funds in the investment account grow with interest until they reach $2 million when she turns 55. How much will Gayle have to deposit each year in order to achieve her goal

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