1. A retired couple plans to supplement their Social Security with interest earned by a $150,000 retirement fund.

a. If the fund compounds interest monthly at an APR of 7.5%, which the couple takes out andspends, how much interest is generated eachmonth?

b. Suppose the APR drops to 5.5%. What is the resulting interest payment eachmonth?

c. Estimate the APR needed to generate $1300 each month in interest.

The interest generated each month is about $

How much must be deposited today into the following account in order to have $35,000 in 6 years for a down payment on ahouse? Assume no additional deposits are made.

An account with monthly compounding and an APR of 4%

$------ should be deposited today.

$15,000 is invested for 6 years with an APR of 3% and quarterly compounding.

The balance in the account after 6 years is $

.