1. At age 20, Nadia starts an Individual Retirement Account (IRA) to save for retirement by depositing $125 at the end of each month. If she can count on an APR of 5%, how much will she have when she retires 50 years later at age 70? Compare the IRA's value to her total deposits over this time period
2. You want to build a $125,000 education fund in 15 years by making regular, end-of-month deposits. Assuming an APR of 4%, calculate how much you should deposit monthly. How much of the final value comes from actual deposits and how much from interest?
3. a. Compute the current yield of a $1000 U.S. Treasury bond with a coupon rate of 3% that has a market value of $970.

b. Compute the annual interest you would earn on a $1000 U.S. Treasury bond with a current yield of 4.05% that is quoted at 103.5 points.