1a.) My daughter just gave birth to a beautiful baby girl, so to help with her college education, I plan to save $1200 each year for the next 18 years. If the first deposit is made a year from now into an account with a compound annual interest rate of 2%, how much will be in her account in 18 years?

A. $22,032.00 B. $21,600.00 C. $1713.90 D. $25,694.77 E. None of the above

1b.) Chad agreed to pay $60,700 for a new tractor. The dealer is offering financing at an annual interest rate (APR) of 0.99%.If he puts $10,000 down and finances the remainder over the next 7 years, how much will be his monthly payment?

• $626.21
• $624.46
• $627.71
• $624.98
• $748.24

A. $626.21 B. $624.46 C. $627.71 D. $624.98 E. $748.24