1. An insurance company needs to pay a client 24 monthly payments of $1000 as part of a settlement. If the insurance company can invest at a rate of 9.6% compounded monthly, what amount of money should they deposit into the account in order to meet their obligation? 2. Suppose you finance a $40,000 car at an APR of 2.4% compounded monthly a. What will your monthly payment be if you pay off the loan in 5 years? b. What will the total interest on the loan be? c. How long will it take you to payoff the loan if you increase your monthly payment by $100? Formulas A = P 1-(1+1) P = Al 1-(1+1)" In P-In( P-Ai) n= In(1+/)