1. Simple vs Compound Interest: Suppose you have $4,000 to invest for 5 years. Your uncle will pary you simple interest with an APR of 6.5% if you invest the money with him. Your bank will pay you an APR of 5.5%6 compounded daily. State whether your uncle or the bank will pay you more interest. Calculate how much more interest you will earn if you choose that option instead of the other. 2. Monthly Deposit Needed for a Dream Trip: Suppose you want to take a trip around the worid 10 years from now. You estimate that the trip will cost $30,000. If you can start making monthly deposits now into an account with a 5.1% APR, how much money will you have to put into the account altogether to reach your goal? Finance 1 - Supplemental Exercises - Siving Moner Compound interest and installment Savirgs 3. Saving for a Car: Suppose vou finaby paid off your car after years of making payments of 5425 per month. You decide to plan ahead foryour next car and keep making deposits af that siae into a savings account that has an APR of 3.7SAk. Unfortunately. 58 months later you get in an accident and total your car, You only get a $3,000 payout from the insurance company. You want to buy a replacement car that costs $30,000. With the money you frave sarved up, do you have enough monery to buy the car? 4. Catching up on retirement: Jo started saving $150 per month into an account with an APR of 4.2% when she was 22 years old. Bo waited to start saving until he was 42 years old. He wants to retire with the same amount of money as J0. He also has access to an account that has an APR of 4.2%. Compare their retirement accounts at age 65 in terms of how much each person invests and how much interest they earned. 5. Which bank should you choose? Determine which bank offers the best interest rate: Federal Bank offers an APR of 3.45% compounded weekly. National Bank offers an APR of 3.48% compounded semi-annually. Web Bank advertises an APY of 3.51%. How much interest would you earn at the bank you just identified if you invested $15,000 for 2 years