1. Levi McArthur graduated with a masters of accountancy degree and has accepted a staff accounting position with a firm; he will receive a salary of $50,000. The firm guarantees that Levi will receive a 5 to 9 percent raise each year for the next five years depending on his performance. What will Levi's salary be in five years if he gets a 5 percent raise each year? What would his salary be in five years if the annual raise is 9 percent?

2. The Grooms Diner has just purchased a counter and stools for $45,000. Nick paid $5,000 down and is going to borrow the remaining $40,000. The Manhattan National Bank will loan him the money for four years if he agrees to make monthly payments.

A. What are the monthly payments if the bank charges 5 percent interest?

B. What are the monthly payments if the bank charges 7 percent interest?

C. What are the monthly payments if the bank charges 9 percent interest?

3. Michael Paul wants to start his own business when he graduates from college in three years and he needs $600,000 to do so. How much money must he put aside today under the following conditions?

A. He can earn 8 percent compounded semiannually.

B. He can earn 8 percent compounded annually.

C. He can earn 8 percent compounded quarterly