1) Tom is planning to buy a house in five years. He is looking to invest $38,000 today in an index mutual fund that will provide him a return of 5 percent annually. How much will he have at the end of five years? (Round to nearest dollar) (SHOW WORKING PLEASE)

2) Your mother is trying to choose one of the following bank CDs to deposit $10,000. Which will have the highest future value if she plans to invest for three years? (PLEASE SHOW EACH STEP)

B) 4.25% compounded monthly

C) 4.75% compounded annually