1. Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 8 years with 6% interest compounded semiannually. How much will Lynn receive at the end of 8 years? (Do not round intermediate calculations. Round your answer to the nearest cent.)

2. Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to withdraw the money at the end of 4 years.

Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal? (Do not round intermediate calculations. Round your answers to the nearest cent.)

3. Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $40,000 at 9% interest compounded semiannually.

At the end of 6 years, what is the balance in Lees account? (Do not round intermediate calculations. Round your answer to the nearest cent.)