1. Your birthday is next week and instead of other presents, your parents promised to give you $1,100 in cash. Since you have a part-time job and, thus, don't need the cash immediately, you decide to invest the money in a bank CD that pays 6.20 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time?
(If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)
2. Roy Gross is considering an investment that pays 6.40 percent, compounded annually. How much will he have to invest today so that the investment will be worth $29,000 in six years?
(If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)