Joe Cool is saving money to buy a new car. He has saved $20,000 so far, and has the money in an account that pays 0.75% per month. His plan is to add $1,500 to this account every month for the next two years, starting next month. These savings will give him enough money to withdraw $3,000 eight months from now (for a new TV set) and to also buy the car exactly two years from now. If car prices are expected to increase by 5% every six months for the next two years, what is the current price of the car that Joe wants to buy? [$49k] 16. 17. John plans to start Graduate school next year and will fund the effort by taking out two loans of $50,000 each; the money will be borrowed one year from today and two years from today. The interest rate on the loans is 6% p.a. and he will repay the debt by making 10 equal annual payments, starting 4 years from today. What is the amount of each of these 10 loan payments? [$14,834.06] 18. Jane is interested in buying a new condo and has saved $10,000 for the down payment; her plans call for making 12 additional monthly deposits into this savings account over the next 12 months. The account pays 6% p.a. compounded monthly. Jane wants to make the purchase 15 months from today and wants to have $20,000 saved up for the down payment. What is the amount of each of the 12 additional deposits she must make for her plan to work out? [$736.59]