These questions

(30 points) 1. You are planning to invest $1,300 in a bank certificate of deposit (CD) for five years. The CD will pay an annual interest of 8 percent. What is the future value of your current investment? (30 points) 2. You expect to need $20,000 as a down payment on an automobile in three years. How much do you need to invest today in an account paying 6.5 percent? (40 points) 3. There are two bonds and you have $5,000 of seed money for your investment. Fidelity bond will mature in 20 years later at repayment of $16,000. MetLife bond will mature in 17 years later at repayment of $14,000. Until then there is no interest for both bonds. 1. a) Calculate the yearly rate of return (r) for both bonds b) Which of the bonds is more attractive investment? Why