1. You want to set up an education account for your child and would like to have $100,000 after 20 years. You find an account that pays 6.5% interest, compounded semiannually, and you would like to deposit money in the account every six months. How large must each deposit be in order to reach your goal?

2. Zeria can afford up to $500 a month for a house payment. If he has $10,000 for a deposit and finances the rest, how expensive of a home can he buy if the interest rate on the loan is 3 percent and the loan is for 20 years?