1. You plan to deposit $3,000 into a savings account that pays 3.5% annual interest. How many years you have to wait to accumulate $4,500 ? (fractional year answer ok) 2. You borrowed $10,000 from your family at 3% interest per year and promised to pay it back in 5 years. How much money will you have to pay in year 5 ? 3. Same problem as above, but in year 2 you managed to pay $2,000 against the amount you owed. How much money you owe in year 5 ? 4. You want to have $15,000 in your account after saving for 7 years. How much $ you need to set aside every year if this account make 4% per year interest? 5. Continue on Q4 : You decided not to spent the $2,000 you have at hand right now, but deposit it in the same account. Recalculate the (reduced) amount you need to save each year to meet the same goal of $15,000 at year 7 6. A used car parking lot has the following deal on a $21,000 car. Zero down and $395 monthly payments for 60 months. What is the monthly rate they charge? 7. Baby Joe's grandparents decided to start depositing $1000/ year in his 3rd birthday and plan to continue doing so until his 21st birthday. How much money will be in the account on his 21st birthday, assuming it makes 4% per year interest annually. 8. An individual is borrowing $275,000 for a 20 year loan at 4.00% per year compounded monthly. Compute the monthly payment. 9. Continue on Q8 : Immediately after the 104 monthly payment, the home owner plans to sell the house. How much money is owed back to the bank? 10. What is the effective annual rate for the problem in Q. 8 (i.e., what is the rate you would use to compute annual instead of monthly payments)