Question 1: Dawn Riley deposited $6,000 in a money market account on January 2 of the current year. How much will her savings be worth on January 2, six years later, if the money market account earns a return of

Round answers to the nearest whole number.

a. 4%? $Answer

b. 6%? $Answer

c. 8%? $Answer

Question 2: Leslie Porter is planning a trip to Europe upon graduation in two years. She anticipates that her trip will cost $18,000. She would like to set aside an amount now to save for the trip. How much should she set aside if her savings earns 4% interest compounded quarterly?

Use Excel or a financial calculator for the computations. Round your answer to the nearest dollar.

Question 3: Robert Smith purchased a used car for $16,000. To pay for his purchase, he borrowed $14,000 from a local bank at 12%. The loan requires that Robert repay the loan by making 36 monthly payments. How much will Robert have to pay each month to repay the loan? How much interest will Robert Smith pay as part of his first monthly payment?

Use Excel or a financial calculator for the computations. Round your answer to the nearest dollar.