1. You receive a $165,000 inheritance from your parents and invest it in a savings plan earning 6 5/8% interest compounded monthly. After 3 years you decide to deposit an additional $12,353.89 in the account and let the money sit for 10 more years. What is the future value of this investment? How much interest has your money earned in the 13 years that it was invested?
2. Tri-Star Airlines intends to pay off a $20,000,000 bond issue that comes due in 4 years. How much must the company set aside now, at 6 % interest compounded quarterly, to accumulate the required amount of money?