1. You can get a car loan with a term of three years at an APR of 4%. If you can afford a monthly payment of $450, how much can you borrow? (Round your answer to the nearest cent.)

2. You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4200 per month. You have access to an account that pays an APR of 7.2% compounded monthly.

What size nest egg do you need to achieve the desired monthly yield?