3. Your grandmother deposited $1,000 into an account for you when you were born, and on each birthday ever since. Interest rates are 4%. (8 pt.s) How much will be in the account on your 21" birthday? If your grandmother forgot to make a deposit when you turned 16, how much will be in the account when you turn 21? 1 4. If a $100 zero coupon bond is sold with a 6 month maturity and a 3.5% yield, how much would it sell for? (5 pt.s) 5. You are thinking about buying a condo, and you have saved $35,000 for a down payment. The bank is offering 4% loans and requires just a 5% down payment. (10 pt.s) What is the most you can borrow? What will your monthly payment be on a 15 year loan? How much principal will you still owe after 5 years? 2 3 5 6 I NAME: 3. Your grandmother deposited $1,000 into an account for you when you were born, and on each birthday ever since. Interest rates are 4%. (8 pt.s) How much will be in the account on your 21" birthday? If your grandmother forgot to make a deposit when you turned 16, how much will be in the account when you turn 21