(ANSWER ALL QUESTIONS) 1. Gloria wants to have $20,000 in 5 years for a house down payment. What single deposit would she need to make now into an account that pays 2.6% interest, compounded daily, to meet her goal? Round to the nearest dollar.
2. Karen opens an account at the local bank by depositing $25 of her birthday money. She continues to deposit $25 each week for 3 years. If the account pays 2.25% interest compounded weekly, how much is in the account after 3 years? Round to the nearest cent.
3. Mark sold his car for $16,500. He placed half of the money into a account with a 2.75% interest rate compounded daily. He placed the other half into a different account with the same interest rate which is compounded monthly. What is the difference in the interest earned on each amount after 5 years? Round to the nearest cent.
4. Tom and Loren are saving for retirement. Their goal is to have $450,000 in 35 years. They open up an account that pays 4.2% interest compounded monthly. How much should they deposit each month to meet their goal? Round to the nearest dollar.
5. Sam wants to go on a $5,000 vacation in 9 months. He has a bank account that pays 4.0%, compounded monthly. How much must he deposit today to afford the vacation? Round to the nearest cent.
6. Carmine has $406.94 in his checking account. During the week he goes to an ATM and withdraws $80. He is charged a usage fee of $2.25 and his bank charges a $2 fee for using a machine outside of the bank’s network. The following week he deposits his paycheck of $489.22. He writes two checks, one for $72.08 and the other for $126.62. What is the current balance in his checking account?