1. 1.You plan on sending your son to Morton College when he turns 18. Based on current estimates, it will cost $10,394.65 for tuition and books, etc. As the result of an auto accident, you have $5,000, received as a settlement from your insurance company. If you invest the $5,000 today at 5%, approximately how many years will it take to accumulate the $10,395?

2. 2.Youre in desperate need of new carpeting in your home and have decided to accept Umpires offer of no money down and no payments for 30 days. At the end of 30 days, you will begin making monthly payments of $300 a month for 12 months. However, youre not sure if this is the best financing deal. The cost of the carpeting plus installation and padding is $3,172.60. Determine if this is an attractive offer by calculating the ANNUAL interest rate on the installment loan