Question 1: If Jennifer Lee purchases a car for $2,500 and pays $1,000 down and the balance in 24 monthly payments, what will her payments be if the lender requires 12% compounded monthly?
Question 2: If Jeffrey Martin had deposited $4,500 at 10% compounded semiannually and it grew to $15,254.24, how long was it on deposit?
Question 3: Three years from today, Mary Rose plans to take a European vacation that will cost $3,000. She consults you, her banker, about methods of providing for the trip. Among your many plans, you explain to her that she can deposit a single amount today and allow it to collect interest for three years so that the account equals $3,000 in three years. Assuming that your bank pays 6-percent interest rate compounded semiannually, how much must Mary Rose deposit now?