1) After taking a finance course, you are serious about developing a MONTHLY plan to save and invest. You are 22 years old and want to retire at 62 years old with 1.5 million dollars. How much do you have to save on a monthly basis if your interest rate is steady at 7%?
2) Jenny has a $5000 balance on her credit card that charges 18% interest, however, each month she gets her credit bill and there is an interest charge. Why is this happening?
3) John buys a corporate bond that pays 15%, pays interest twice per year, and matures in 20 years. How many compounding periods are there?