Recording ge A BTW-E. A Em Got 1- % O PROBLEMS M 1. CLOVIS SCHOOL DISTRICT IS TRYING TO REPLACE ITS SCHOOL BUSES IN TEN YEARS. IT HAS ESTIMATED THAT IT NEEDS 5500,000 TO REPLACES THE BUSES THE DISTRICT WANTS TO KNOW HOW MUCH EACH YEAR, IT SHOULD SAVE AND INVEST SO THAT BY TEN YEARS THEY HAVE $500000 THEIR BANK TELLS THEM THEY CAN INVEST THE MONEY AT 6% FOR THE FIRST FIVE YEARS AND AT 7% FOR THE REMAINING FIVE YEARS. HOW MUCH EACH YEAR MUST BE SAVED AND INVESTED AT THOSE RATES TO HAVE $500 000 IN TENS YEARS? 10 IF PROBLEM 2. YOU READ THE FOLLOWING ADD IN FRESNO BEE: ABC INVESTMENT IS OFFERING YOU THE OPPORTUNITY TO INVEST 51000 A YEARS WITH THEM FOR TEN YEARS THEN AFTER THAT THEY PROMISE TO GIVE YOU 51000 A YEAR FOR LIFE WHAT IS THE RATE OF RETURN ON THIS INVESTMENT? DOES AGE MATTER? 27 24