1.Parents have set up a sinking fund in order to have $160,000 in 16 years for their childrens college education. How much should be paid quarterly into an account paying 4.8%compounded quarterly? Round answer to the nearest cent. Show work.

2. If a bank pays 2.4% interest compounded monthly on its certificates of deposit (CDs), what is the effective interest rate? Give answer as a percentage; round answer to nearest one hundredth of a percent. Show work.