1. You plan to retire in 30 years. You are debating whether to deposit $31000 into an account earning 9 percent annually today or waiting 7 years before making the deposit. How much more will be in the account when you retire in 30 years if you make the deposit today as opposed to waiting 7 years to make the first deposit?
2. You expect to graduate with $44200 in student loans. The interest rate on your loan is 4.8 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 21 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).