1.) Jill has to decide between receiving either a) $12,000 now or b) $15,000 five years later. If the annual compound interest on investment is 6 %, what would be her best choice?

(Please base your answer on a calculation on the workout sheet)

2.). Betty and Bill want to renovate their house 3 years from now. They can deposit $500 at the end of each month in their saving account for that purpose. How much will they have available for the renovation of their account bears annual interest of 9.35 compounded quarterly?