1. Use the Compound Interest Calculator to determine the amount Jinhee would save toward her auto purchase if she were to invest $2,500 today for two years at 7 percent with annual compounding. How much would she save if the institution uses monthly compounding?
2. Using the Compound Interest Calculator, recalculate your answer for Discussion Case 1 question 4 in the text. Which "Compound Interest Calculator" result (annual, monthly, or weekly) most closely matches your previous answer? Why?
3. Paul's 15-year student loans have a rate of 8.125 percent; use the Loan Amortization Calculator to determine his payment. How much will his payment be if his rate were 7.250 percent? How much interest would he save if his loan had the lower rate?
4. If Paul pays off his loan after exactly five years, assuming his rate is 7.250 percent, what principal amount would he need to send to the bank? How much total interest will he have paid? Use the Loan Amortization Calculator to calculate your answers.