(Show all your work or calculator keys. Please do not take pictures of your hand written answers and you must type. Do not show calculator keys keys like Enter C/CE 2^nd Arrow keys etc.)

Excel spreadsheet solutions may be submitted but will not be graded. you would need to show all steps or calculator keys in calculations.

1. Thirty years ago, Martha deposited $6,500 with a bank that paid her 8 percent simple interest. Thirty years ago Mary also invested $7,500 in another bank that has paid her 8 percent interest, compounded annually. How much more interest has Mary earned than Martha over the past thirty years?
2. Your parents will give you a gift of $5,000 when you graduate two years from now. You are planning to deposit this money in an account that earns 6.5 percent, compounded annually. Once your deposit grows to $50,000, you plan to buy a sports car. How long from now will it be until you can buy your sports car?
3. Able invested $5,000 in a fund for 45 years This fund gives an annual return on 7 percent per year for first 20 years and then earns 9% for remaining time. How much will this fund grow to at the end of the 45 years?
4. Assume the total cost of a college education will be $325,000 when your child enters college in 16 years. You presently have $40,000 to invest and do not plan to invest anything further. What annual rate of interest must you earn on your investment to cover the entire cost of your child's college education?
5. How long will it take for your money to grow three times at 7% annual rate of interest?

Please answer all of them!!