1. Assume that Amanda started a paper route on January 1, 1970. Since that day, at the end of every three (3) months (first deposit made on April 1, 1970), she deposited $500.00 into a savings account, which paid her interest of 4 percent annually but with quarterly compounding. On January 1, 1980, she took the balance in her savings account and transferred it to an account that paid 11.5% p.a.Assuming that Amanda did not deposit any additional money into the account after the transfer, how much did she have in her account on January 1, 2017?
2. JD Fenix has $15,000 that he will use as a down payment on a car. Assuming that he can afford a payment of $1225 per month, how much can JD spend on a car(that is, what is the total cost of the car that JD can purchase)if the interest rate is 5.75% and if he will finance his purchase with a 5 year, monthly payment loan?