Client #15

As part of Dions retirement plan, he wants to save $600 every month at a 4.5% interest rate compounded monthly. He plans to retire in 30 years.

(5 pt) Determine the total amount Dion will have after 30 years. 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 #16

Jax came to your bank to borrow money to start a new business. He can afford to pay $265 per month and wants to pay back the loan in 30 months. Your bank offers him a 30-month loan with compound interest rate of 4.7%. Jax wants to know the maximum amount of money he can borrow.

(5 pt) Calculate the maximum amount Jax can borrow. 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.