1- Starting next year, you will need $18900 annually for 4 years to complete your education. (One year from today you will withdraw the first $18900.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $18900 payments.

a) How large must the deposit be?

b) How much will be in the account immediately after you make the first withdrawal?

2- Simon recently received a credit card with an 40.25% nominal interest rate. With the card, he purchased an Apple iPhone 6 for $461.71. The minimum payment on the card is only $20 per month.

a) If Layla makes the minimum monthly payment and makes no other charges, how many months will it be before he pays off the card? Round to the nearest month.

b) If Layla makes monthly payments of $35, how many months will it be before he pays off the debt? Round to the nearest month.

c) How much more in total payments will Layla make under the $10-a-month plan than under the $35-amonth plan? Make sure you use three decimal places for N.