Directions: For each problem, show the correct formula, show everything plugged into the formula you have chosen, and then solve the problem. 1. Suppose you want your newborn child's college fund to have $100,000 after 18 years. If you can get an APR of 7.0%, compounded monthly, how much should you deposit each month in order to reach this goal? (5 points) 2. Sky invests $7000 in a savings account that compounds interest quarterly at an APR of 4.7%. Bubba invests $7000 in a savings account that compounds interest continuously at an APR of 4.6%. Who will have the larger accumulated balance after 10 years and what will those balances be? (6 points) 3. Suppose that you make a one-time investment of $5178 in an account that earns interest at an APR of 4.1% compounded monthly. Determine the accumulated balance after 8 years. (5 points) Find the APY (Annual Percentage Yield for a 5% interested for the different compound periods. a. Yearly (1 point) b. Monthly (1 point) C. Dally (1 point) d. Continuously (7 poiny Suppose you have just purchased a home for $516,000. To buy this home you will need to put 5% down and obtain a 30-year home mortgage at an APR of 5.5%. a. Find the required monthly payment. (5 points) b. Putting the same amount as a down payment, what would your monthly payment be if you decided instead to pay off the loan in 20 years at a 4.8% APR? (5 points) . How much would you save in interest charges by paying off the loan in 20 years as opposed to 30 years? (5 points)