1. Suppose you open aregular savings bank accountat Chase. Suppose you save $100 a month for five years. How much will you have at the end of 5 years?

2. Now, let us look at putting your money into an account where you can earn a higher rate of return than what you would earn in a Bank of Chase regular savings account.

What is your age today? At the end of each year, starting December 31, 2017, you put $3,000 in an investment account earning 8% per year and you continue making $3,000 contributions every year until you reach age 70. How much will you have in your retirement account?

How much will you have in your account if you start your contributions at the end of 2018, instead of the end of 2017?

3. Go to the Visa or Mastercard web site. If you get a credit card, what would your annual rate (APR) be?

a.Now, suppose that you buy a set of robot vacuum cleaners that you always wanted for $5,000, and you charge this amount on your new credit card. Now, assume you pay for this purchase by making $100 payments per month to the credit card company. Develop an amortization table assuming $100 payments each month for the first year (12 monthly payments). To get credit for this question #3, part a., you must show all of your work. How much of the $100 is interest and how much is being used to pay down your debt during the first 12 months? (State the mount of interest and state the amount of debt principal repayment each month; then sum those amounts to show the total amount of interest and debt repayment during the first year.) Note that you do not need to do these calculations by hand - there are many websites that will calculate amortization tables and excel has an add-in feature to calculate this.

b.At a rate of $100 per month, how many months will it take to repay the entire $5,000?