1. Jenny deposits $867 into an account earning 5.309%, compounded weekly.

(a) What will be her account balance in 14 weeks?

(b) How long will it take for the account balance to grow to $1,500?

2. Chell lends $500 to a friend for 8 months. What simple interest rate should she charge if she want to be paid back a total of $535?

3.Gordon Freeman wants to have $32,000 in 5 years in order to purchase a new car.

(a)How much should he deposit today in an account earning 6.4%, compounded quarterly, to have the required amount in 5 years?

(b)How much interest will be earned?

(c)If he can only deposit $16,000 now, how short of $32,000 will he be?

(d)Suppose he can deposit $16,000 now in account that compounds interest continuously. What interest rate would he need to accumulate the $32,000 in 5 years?