Client #12

Cosmo borrowed $145 from his sister, Lisa, for 2 months. She charged him 30% annual simple interest. Cosmo came to you to find out how much he has to pay his sister at the end of 2 months.

(5 pt) Determine how much Cosmo will have to repay his sister. Write out 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.

Client #13

Quinn wants to take his entire family including his kids, their spouses, and his grandchildren on a vacation. He wants to have $26,000 in 4 years. Your bank is offering CDs at the rate of 3.9% compounded semi-annually. He wants to know how much he needs to invest now in order to reach his goal.

(5 pt) Determine how much Quinn needs to invest now in order to reach his goal. Write out 1) the correct formula with variables (e.g. P₀, P_N, N, r, etc.), and 2) the correct formula with the numerical values (round your answer to the nearest cent, 3) write the answer in a complete sentence.