2. You want to purchase your first home and need $20,000 for a down payment. You can save $850 at the end of every quarter. If you deposit this amount in an account paying 6.71% interest compounded quarterly, how long will it be before you can purchase a home? Express your answer in MONTHS. [3 marks] BGN N PY CY 1/Y PMT PV FV ANSWER: 3. Nine months ago you bought $40,000 worth of equipment. You paid $5,000 immediately and agreed to pay off the rest with three payments. Three months ago you made your first payment of $13,000 and will make 2 equal payments in 3 months and one year (from today). The interest rate is 8% compounded quarterly. Suggested focal date: one year from now. (a) Do a well-labelled time diagram. [1 marks]