1. Refer to Narrative 12-1. Jenny Poole bought a bedroom suite for $4,600 at Richard's Furniture. She made a $1,200 down payment and financed the balance at the store over a two year period at 12% interest.

a. What equal monthly payments will be required by Jenny to amortize the loan?

b. If Jenny's credit union will finance the furniture for 6% interest compounded monthly, how much can she save per month on the payments?

2. Refer to Narrative 12-1. Find the future value of $300 deposited at the END of every year, for 4 years if the bank pays 7% interest, compounded annually.

3. Refer to Narrative 12 - 1. Strong Hardware Company has decided to save for a future expansion to a second location. They invest $2,800 at the END of every month at 12% interest compounded monthly.

a. How much will be available for the second location after 2 years?

b. How much more will be available after 3 years?