8. The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $160/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 3%/year compounded monthly, how much money will be in their travel fund at the end of the fourth year? (Round your answer to the nearest cent.) $

9.Lup made a down payment of $8000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 6%/year compounded monthly. Under the terms of her finance agreement she is required to make payments of $470/month for 36 months. What is the cash price of the car? (Round your answer to the nearest cent.) $

10.The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minimum of $2600/month in monthly payments (to take advantage of the tax deduction) toward the purchase of their house. However, because of other financial obligations, their monthly payments should not exceed $3200. If local mortgage rates are 2.5%/year compounded monthly for a conventional 30-year mortgage, what is the price range of houses that they should consider? (Round your answers to the nearest cent.)

least expensive	$
most expensive	$

11.Suppose that Ramos contributes $5000/year into a traditional IRA earning interest at the rate of 3%/year compounded annually, every year after age 37 until his retirement at age 67. At the same time, his wife Vanessa deposits $3500/year (the amount after paying taxes at the rate of 30%) into a Roth IRA earning interest at the same rate as that of Ramos. Suppose that Ramos withdraws his investment upon retirement at age 67 and that his investment is then taxed at 30%. (Round your answers to the nearest cent.)

(a)

How much will Ramos's investment be worth (after taxes) at that time?

$

(b)

How much will Vanessa's investment be worth at that time?

$