1. Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $3,000 per month for the next 20 years. If the fund earns 8% per year compounded continuously, how much money does he need now to establish the fund? Exact value =_____dollars

Rounded to the nearest cent = _____ dollars

2. A Math 110 student decides to make annual payments of $1,500 into a retirement account paying 5% interest per year compounded continuously. If the student continues to make these payments for 30 years, compute each of the following values. Account balance after 30 years (exact value) =_____dollars

Account balance after 30 years (rounded to the nearest cent) = _____dollars Total of all deposits (exact value) =_______ dollars Total of all interest payments (rounded to the nearest cent) = ______dollars

3. Determine whether each statement is true or false. You have one submission for each statement. (a) If p denotes the equilibrium price, then the consumer surplus at any price higher than p must be less than or equal to the consumer surplus at price p.True False

(b) If p denotes the equilibrium price, then the producer surplus at any price lower than p must be less than or equal to the producer surplus at price p.True False