1. Suppose you plan to have $20,000 in 10 years from now and you can invest your savings at 6% compounded continuously. Assuming you can save the same amount of money each year, how much do you need to save on a yearly basis in order to achieve your goal? Hint: Treat your savings as an income stream. Yearly savings (exact value) = dollars

Yearly savings (rounded to the nearest cent) = dollars

2. A Math 110 student decides to make monthly payments of $1,000 into a retirement account paying 7% interest per year compounded continuously. If the student continues to make these payments for 30 years, compute each of the following values. Account balance after 30 years (exact value) = dollars

Account balance after 30 years (rounded to the nearest cent) = dollars Total of all deposits (exact value) = dollars Total of all interest payments (rounded to the nearest cent) = dollars

3. Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $6,000 per month for the next 20 years. If the fund earns 8% per year compounded continuously, how much money does he need now to establish the fund?

Exact value = dollars

Rounded to the nearest cent = dollars

4. The demand and supply functions for Penn State women's volleyball jerseys are:

p = d(x) =	x2 15x + 339
p = s(x) =	5x2 + 3x + 15

where x is the number of hundreds of jerseys and p is the price in dollars. (a) Find the equilibrium quantity.

Equilibrium quantity, x = , which corresponds to jerseys.

(b) Compute the total surplus at the equilibrium point.

Total surplus = dollars