1. You have been dating your significant other for 2 years now and you’ve decided it is time to pop the question. Your fiancé-to-be, Pat, has expensive taste and has picked out a band that costs $7,450, but Pat is willing to wait for you to save the money. You don’t want to wait though and have found the jeweler with the best financing options.
a. How much would you have to save each month if you deposited the money in a 2% interest bearing account for 18 months?