Power of Compounding:

a, b, and c please show all work/explain if possible! Thank you a million!

a. You borrowed $1,000 from a loan shark at 5% monthly interest. How much do you owe four years later? b. You are trying to build a nest egg for your retirement. You have estimated that you will need income of $5,000 a month in order to live comfortably after retirement. How large a nest egg (principal Po) must you have at retirement? Assume that at your retirement you put that money, Po, in an annuity with a guaranteed annual return of 8%. And suppose you think you will live forever. c. You are now 25 and plan to retire at age 65. You want to start saving so that you can build a nest egg of $1 million. How much should you save each month? Assume that your savings will be earning 10% interest each year, compounded monthly