You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded annually. How much must you invest if you want the balance in the CD account to be $8,500 in five years?

2. You deposited $1,000 in a savings account that pays 8 percent interest, compounded annually, planning to use it to finish your last year in college. Two years later, you decide to go to the Rocky Mountains to become a ski instructor rather than continue in school, so you close out your account. How much money will you receive?