1. Bobby Nelson is hoping to buy a sports car in 6 years. He has set up a sinking fund earning 3%, compounded quarterly. If the car he wants will cost $9,200, what amount should his quarterly deposit be in order for him to have enough to buy the car in 6 years? Assume deposits are made at the beginning of each quarter. (Use BGN mode.)
2. Six years ago, Phil Nelson deposited $12,000 in an account earning 3%, compounded semi-annually. He decided now to take the accumulated money and switch to an account earning 4.6%, compounded quarterly. If he lets the money in that account for another 10 years, how much will the future value be?