1. If the future value of an ordinary, 7-year annuity is $9,600 and interest rates are 9.0 percent, what’s the future value of the same annuity due? (Round your answer to 2 decimal places.)
2. You can deposit $5,000 into an account paying 8% annual interest either today or exactly 5 years from today. How much better off will you be at the end of 30 years if you decide to make the initial deposit today rather than 5 years from today?
3. If Bob and Judy combine their savings of $1,900 and $700, respectively, and deposit this amount into an account that pays 6% annual interest, compounded monthly, what will the account balance be after 3 years?