How much must you invest today if you wish to receive $5,000 in 6 years? Your savings will compound quarterly and earn 5.00%.

Betty is considering purchasing a new car. The list price is $30,000 and the dealer is offering 0% financing over 5 years.

Alternatively, Betty can arrange her own financing and receive a $4,000 discount on the price of the car. Her bank will finance the car at 7.0% over 5 years.

1. Should Betty take the discount or the zero percent financing? Her decision is based on the monthly payment for each option. Enter A for taking the zero percent financing and B for taking the discount and financing through the bank.

2. How much will Betty save each month by taking the correct offer?

Betty has determined she will need to receive $10,000 dollars at the beginning of each month after retires. She will earn 5% on her retirement account and plans to live for 30 years after she retires. She can earn 11% on her savings while working over the next 40 years

1. How much must Betty have accumulated in her retirement account on the day she retires?

Round to the nearest dollar. Use commas, but do NOT use dollar sign.

2. How much must she save every month over the next 40 years?