Problem $1$: On the day you were born, your parents took $$8952$ to the

bank and purchased a $25$ year CD that will earn $3\mathrm{.}4\%$ interest. How

much money will you have on your $25$ th birthday?

Problem $5$: You are buying a car. The one you have choosen to

purchase is going to cost you $$32,985.$ Your car salesman has told

you that you can purchase this vehicle for $$525$ per month for $72$

months. What interest rate will you be paying?

Problem $2$: Congratulations! You just won the lottery. Beginning

today, you will receive $$5000$ per week for the next $30$ years.

Assuming an interest rate of $2\mathrm{.}75\%,$ what is the Present Value of this

prize?

Problem $4$: You have future plans to buy a house $5$ years from now.

You estimate that a down payment of $$20,000$ will be required at that

time. To accumulate that amount, you want to start making monthly

payments into an account paying $3\mathrm{.}9\%$ interest. What will your

monthly payments be$?$

Problem $6$: You are not quite sure about the car deal in Problem $5.$ So

the car salesman now tells you that the company is offering a bonus if

you buy the car today. You can either choose to get a $$2500$ discount

on the car price, or zero percent financing. Which option is the best

deal? Please compute the PMT for both options to find out.