1. If $21,200 is invested in a 2-year CD that compounds annually (so n=1) with an APR of 5%, what will the CD be worth when it matures?
The CD will be worth $_______ when it matures. (Enter a number rounded to two decimal places.)
2. The town of Escalon is issuing 10-year savings bonds so that they can build a new hospital. When the bonds mature the town will owe $3,250,000 to the bondholders. How much will the town need to deposit each quarter (so n=4) into a savings account with an APR of 2.25% in order to have enough to pay the bondholders upon maturity?
The town should deposit $_________ each month. (Enter a number rounded to two decimal places.)