1. Snowflake Bank offers a savings account that pays 5.2% annual interest, compounded monthly. a. If you deposit $2500 into this account and leave it, how much will be in the account at the end of two and a half years? b. Instead of depositing the money all at once, you decide to deposit $100 a month into the account. How much will be in the account at the end of two and a half years? 2. The Bank of Santa Claus offers an account that pays 5.3% annual interest, compounded continuously. If you deposit $1500 into this account and leave it, how long will it take to grow to $2000? 3. You want to fund an ansuity that will pay you $1000 per year for 20 years. You find an account that will pay 8% per year, compounded annually. How much must you deposit today in order to fund this annuity? 4. Suppose you deposit $2000 per year in a retirement account. a. How much would be in the account after 20 years if the bank pays 6% per year? b. How much would be in the account after 20 years if the bank pays 4% per year? 5. You want to buy a used car. The car costs $16,489, including tax and license. You put down $5000 and finance the rest over three years. The annual interest on the loan is 11%. What is your monthly payment on this loan? M 63 OF