1. J Lo Enterprise is planning a major expansion for four years from today. In preparation for this, the company is setting aside $35,000 each quarter, starting today, for the next four years. How much money will the firm have when it is ready to expand if it can earn an average of 6.25 percent, compounded quarterly, on its savings?
2. You want to purchase a new condominium that costs $329,000. Your plan is to pay 20 percent down in cash and finance the balance over 25 years at 6.25 percent. What will be your monthly mortgage payment?
3. Randy Moss wants to save for a trip to Canton, Ohio. He will need $12,000 at the end of four years. He can invest a certain amount at the beginning of each of the next four years in a bank account that will pay him 6.8 percent annually. How much will he have to invest annually to reach his target?