1. Interest is a fee charged based on money borrowed or saved. What are some situations that you know of that involve interest being awarded/earned?

2. A close friend is setting up a college savings account for their newborn child. They ask you for your advice. Select which of the following is the better investment. Explain why by showing your work.

Account A: Save $5000 invested in an account that pays 4% simple interest per year for 18 years.

Account B: Save $4500 invested in an account that pays 3.7% interest rate compound daily for 18 years.

3. A couple needs $44,135.47 as a down payment for a home. If they invested the $14,000.00 they have at 7.5% compounded every 4 months, how long will it take for the money to grow into $44,135.4