1. You put $500 into a savings account twice a year (at the beginning of the period). You earn 2.5% interest, compounded semi-annually. What will the balance be after 15 years? Please show work.
2. You want to purchase a new car since the prices have dropped so low due to the current economic condition. You can purchase the car for $18,000. You know that you can get a loan at 4.5% (compounded monthly). How long will it take you to pay off the loan if you can make a monthly payment of $350? Please show work.