/ 20 marks 1) Clara borrowed $1,900 from her parents to buy a new laptop. They charged her 1.80% simple interest. She paid them back in 14 months. How much interest did she pay? How much did she pay them in total? [4 marks] 2) You want to have $7500 in 8 years. You have two options to invest in. A savings bond will give you 4.25%/a, compounded semi-annually. A GIC will give you a 4.15%/a, compounded quarterly. Which option will require a smaller initial investment? Which option should you pick? [6 marks] 3) Matteo has saved $350 000 in an investment account. He will use it to buy an annuity that pays 5.35%/a, compounded monthly. He will receive monthly payments over the next 30 years with the first payment starting next month. a) What is the monthly payment he will receive? b) What is the interest earned over the duration of the annuity? [10 marks]