1. What is one advantage and one disadvantage of investing in a CD (Certificate of Deposit) from a commercial bank?

2. If a newly retired person has $300,000 in their retirement account earning 5.5%/year (compounded quarterly like in Exhibit 14-7), and expects retirement to last 15 years, how much can the retired person take out of the account every month? So at the end of 15 years, the account will be depleted down to $0. Show all work for full credit.

3. Your friend currently has $15,000 in an IRA (Individual Retirement Account) and estimate that it will earn 6%/year. She is now 30 years old and plans to retire when she is 65 years old. If she wants $1,000,000 in the account in 35 years, how much more does she have to deposit every year to have the $1,000,000 total? Show all work for full credit.