1.

You plan to spend a semester abroad in France. You will live in France for 7 months starting 7 months from now. Each month in France will cost you $7,731 How much must you invest each month, for 4 months, starting next month to exactly pay for your trip if your investments earn 3.52% APR (compounded monthly)?

2.

You expect that you will need to replace your furnace in 5 years at a cost of $15,563. How

much must you save, each month for 19 months, starting next month (the same amount

each month) if your savings account pays 2.41% APR (compounded monthly)?

3.

You currently have two loans outstanding: a car loan and a student loan. The car loan requires that you pay $445 per month, starting next month for 26 more months. Your student loan is requires that you pay $91 per month, starting next month for the next 90 months.

A debt consolidation company gives you the following offer: It will pay off the balances of

your two loans today and then charge you $461 per month for the next 44 months, starting

next month. If your investments earn 3.92% APR, compounded monthly, how much would

you save or lose by taking the debt consolidation companys offer?

If you lose, state your answer with a negative sign (e.g., -25,126)