Hector just started his job at Toyota and is offered the benefit of saving $75 each week from his paycheck in a retirement plan that will earn 4% interest. Hector begins saving in one week and expects to contribute to this plan for 40 consecutive years. At retirement (in 40 years) Hector would like to begin to draw an equal monthly amount from his accumulated savings, and Hector expects to live for 25 years after he retires. Assuming a constant interest rate of 4% in retirement, which of the following amounts comes closest to that equal monthly amount that Hector can spend once in retirement?

		$1,430
		$6,070
		$2,032
		$2,910
		$4,191

1. The parents of a newborn baby would like to put money away today to cover the expected tuition of the child. Suppose that the parents estimate that the cost of tuition will be $86,000 per year for four consecutive years, the first payment due exactly 18 years from today. Which comes closest to the amount of money that needs to be set aside today to cover all four years of college tuition is the interest rate is 7%?

   		$344,000
   		$101,777
   		$98,606
   		$83,081
   		$92,218

1. Which of the following comes closest to the monthly car payment on a loan of $20,000 today if the loan is to paid off over 48 months and if the interest rate is 6%?

   		$470
   		$446
   		$540
   		$493
   		$517