Answer the following word problems about discrete funtions: FULL SOLUTIONS

4. Having just turned 16 years old, your friend has their mind set on buying a new car by the time they turn 20 years old. They can afford to save $440 per month. They place the money into an annuity that pays 5.5% per year, compounded monthly. How much will they have to spend on a car after 4 years? [3 marks] 5. You can afford to invest $15G per month in an annuity that earns 4% per year, compounded monthly. How long will it take before your investment is worth $5: mm? [3 marks] 6. You invested your summer earnings into an annuity from which you can draw expenses while you are at university. If you need to withdraw $12o each month for El months of university, how much do you need to invest in an account, earning [3% per year, compounded semi-annually, in order to cover your expenses? [3 marks] 7. If $25: mm is invested into an account paying 4.5% per year, compounded quarterly, how much money can be withdrawn from the account every two months for the next 6 years? [3 marks]