11:

Show all necessary work for each problem; your work is part of the grading criteria. Precise usage of

language and symbols/notations

1. (14 points) Taylor's MasterCard activity for one billing period is shown below:

January 1 Billing date

January 4 Payment $275.00

January 6 Gas $62.37

January 10 Lunch $21.58

January 13 Groceries $232.73

January 18 Clothes $128.21

January 20 Car Maintenance $197.68

January 26 Gas $59.25

The previous balance on the card was $652.87 and it has an annual interest rate of 21%. Calculate the

finance charge that will appear on the statement for the next month using the unpaid balance method

and the average daily balance method.

2. (6 points) Kristy has calculated that she needs to have $80,000 to add an inground swimming pool at

her house. She plans to save for this expense by depositing money into an ordinary annuity that pays an

annual interest rate of 1.68%. If she wants to start the pool project in 4 years, how much would she

need to deposit every month? How much of this money would come from interest?