1. Peter and Lily are both 25 years old and are planning to retire in 40 years. Peter decides at 25 to save $1,000/month for 10 years. Lily decides at 35 to save $1,000/month for 30 years. Who will have more money at retirement (t=40 years)? Both earn 7% annual interest on saving, compounded monthly. (Show work to receive full credit)

2. Ben who plans to start a marketing firm takes out a $600,000 loan from Alexander Bank Co. The interest rate charged on the loan is 16% APR compounded quarterly. The maturity (length) of the loan is 10 years. If payments each period is the same each quarter, how much does Ben have to pay each quarter?

3. Continue with the previous problem. after 1 year, Ben was approached by Franziska fin-tech Co. who offers to refinance his loan at an interest rate of 8% APR compounded quarterly for the remainder of the 9 years. How much can Ben save each quarter?