Problem
1. Compare the interest earned by P dollars at i% per year simple interest with that earned by the same amount P for five years at i% compounded annually.
2. A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in 5 years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.