1. During Jack's first year at college, his father had been sending him $200 per month for incidental expenses. For his sophomore year, his father decided instead to make a deposit into a savings account on August 1 and have his son withdraw $200 on the first of each month from September 1 to May 1. If the bank pays 1.8% interest compounded monthly, how much should Jack's father deposit?
2. Suppose that a magazine subscription costs $45 per year and that you receive a magazine at the end of each month. At an interest rate of 2.1% compounded monthly, how much are you actually paying for each issue?