This homework is due Monday, November 26, 2018. Show the formula used with all known values. 1) Nancy plans on putting $500 in an account on her daughter's birthday, beginning with the first one and continuing through age 16. If the account pays 8% compounded annually, how much should be in the account on Nancy's daughter's 16t birthday? Answer 2) The Tanner's have received an $8000 gift from one of their parents to invest in their child's college education. They estimate they will need $20,000 in 12 years to achieve their educational goals for their child. What interest rate compounded semiannually would the Tanners need to achieve this goal? [Show your work to receive credit] Answer 3) Ron Hampton is saving for a computer. At the end of each month, he puts $60 in a savings account that pays 4.5% interest compounded monthly. How much is in the account after 3 years? [Show your work to receive credit] Answer: 4) If a credit card charges 1% per month on the unpaid balance, what effective interest rate is the company charging? [Show your work] Answer 5) Jeff is planning to buy a new car for $17,000. The car dealership offers three financing plans, none of which requires a down payment a) 6.9% simple interest for five years, b) 3.9% simple interest for four years, and c) 0% interest for three years. How much would Jeffs monthly payments be under each financing option? [Show your work, answers alone will receive no credit] a) Answer b) Answer c) Answer 6) The Bigger Wave Boat Co. sells George a new fishing boat for $9200. The company agrees to finance 90% of the purchase at 8.5% simple interest, computed on the unpaid monthly balance, for a period of 72 months. [Show your work] a) What is the amount of each of George's monthly payments? Answer b) Assuming timely payments of the amount found in (a), what is the unpaid balance of the loan after the 24h payment? Answer 7) Which investment earns the most? [Show your work] Circle the answer of the one that earns the most a) A savings account paying 6.35% compounded annually. b) A government bond paying 6.5% compounded semiannually. c) A certificate of deposit paying 6.3% compounded quarterly. 8) What income will a couple that is comfortably retired now on $45,000 per year need 10 years from now to maintain the same standard of living if the inflation rate is assumed to be 5% per year