1. You can lease a $12,000 car for $500 per month. For how long (to the nearest year) should you lease the car so that your monthly payments are lower than if you were purchasing it with an 7%-per-year loan? You should lease the car for how many years or less?
2.Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $40,000 per quarter for 20 years. If she works 32 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)
3.Find the periodic payments PMT necessary to accumulate the amount given in a sinking fund. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $30,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start.