Question 1 (8 points) Gerald buys a farm vehicle that costs $42,000. The interest rate on the loan is 16% over 8 years. Gerald wants to explore different compounding periods. a. If Gerald chooses to make annual payments, what is his annual payment? b. How much total interest does Gerald pay by making annual payments? c. If Gerald chooses to make monthly payments, what is his monthly payment? d. How much total interest does Gerald pay by making monthly payments? e. Which choice is better for Gerald if he wants to minimize his interest paid? Question 2 (3 points) You invested $52,400 at 2% compounded annually for 5 years. What is your total return on this investment? Paragraph v B I U v A] Question 3 (2 points) Jolene needs to save $7000 in a year and a half to buy a car. How much must she invest every week into a savings account that has a weekly compounding interest rate of 3.75%? Paragraph v B I U v A] Question 4 (3 points) Kelly purchases a bicycle that costs $499. The store offers her a "Do Not Pay for a Year" promotion. If the finance charge for the offer is $139, what is Kelly's effective interest rate if she pays the bicycle off in 12 months? Question 5 (5 points) Walter has $225,000 invested in an account that gives him a 3.5% interest rate, compounded monthly. a. If he wants to receive monthly payments from the account for the next 30 years, how much does he receive each month? b. How much interest does his investment make? Question 6 (1 point) Find the balance on a deposit of $818, earning 4% interest compounded semi-annually for 2 years. 0 a) $858.08 0 b) $885.43 0 c) $985.08 Question 7 (1 point) You invest $5000 at an interest rate of 3% compounded annually. What is your investment worth after 6 years? 0 a) $5450.22