Graded Homework Assignment #4 Due March 20, 2019 Remember to show your work in detail to receive credit for your answers. 1. You are planning on saving for your child's education. You begin to contribute to a college savings plan that pays an APR of 4.8% compounded northly. If you want to save $50,000 over 16 years, how moch will you need to deposit ech month? You have a savings account into which you invest $50 at the end of every and the account pays an APR of 9% compounded monthly 2. a. Fill in the following table. At end of month number Interest paid on prior balance de b. Use the regular deposits balance formula (Formula 4.8) to determine the balance in the account at the end of four months. Compare this to the final balance in the table from part a. Use the regular deposits balance formula to determine the balance in the account at the end of four years. Use the regular deposits balance formula to determine the balance in the account at the end of twenty years. c. d. You have a balance of $400 on your credit card and make no more charges. Assume that the card carries and APR of 18%. Suppose you wish to pay off the card in six months by making equal payments each month. What is your monthly payment? Assume that you have a balance of $3000 on your credit card and that you make no new charges. Assume that the credit card has an APR of 12% and that each month you make only the minimum payment of 5% of the balance. 3. 4. a. Find a formula for the balance after t monthly payments. b. What will be the balance after 30 months? c. What will be the balance after 10 years? d. At what balance do you begin making payments of $20 or less? General Policies: Write up your problems on loose leaf paper and staple it beneath this sheet. I do not have a stapler in class. Papers turned in without a staple earn a 1-point penalty Papers are due at the start of class. See the syllabus regarding late papers. Typically, I hand papers back the class after they are due. No assignments will be accepted once papers are handed back