solve question 3, 4 & 5

e and show all work on a separate sheet of paper. To receive full credit include 1) List the key words. 2) Correct formula(s) 3) Values identified, such as P = 4) Steps on the calculator and/or other work shown 5) Correct answer 6) Label your answers 1. When Bridget accepted a new executive position, she was offered a $20,000 bonus now or the option of an extra $350 each month for five years. If both are invested for the 5 years at 6% compounded monthly which choice is better and by how much? 2. Kevin and Maria have a list of remodeling projects for their house. They have two options A or B. A) They can borrow funds at 6.9% compounded monthly for 5 years, paying $400/month. a) How much can they borrow? b) How much interest will they pay on that loan? B) They can invest the $400/month at 3.6% compounded monthly for 4 years and then remodel. a) How much will they have in their savings account after 4 years if they choose plan B? b) How much interest will they earn on the investment? C) Which is the better choice and why (2 reasons)? 3. Being a wise parent, you decide to invest $500 each month for your newborn daughter's college education Setting your heights high, you aim for an education at Vine Covered University (VCU). Estimated expenses for VCU are $150,000. You have found an investment that pays 3% annual rate, compounded monthly. How old will your daughter be when you have the funds to send her to VCU? 4. Earl and Larry each begin full time jobs in January 2001 and plan to retire in January 2046, after working 45 years. Let's assume that they will earn 8% interest compounded annually a) Suppose Earl opens an annuity account his first year on the job and deposits $2.000 into the account on January Ist of each year for 10 years. After that he makes no further deposits and lets the money earn interest for the next 35 years. How much money will Earl have in his account when he retires in January 2046? b) Suppose Larry waits ten years before opening his annuity account and then deposits $2,000 into th account every January 1st each year for 35 years. How much money will Larry have in his accou when he retires in January 2046? c) How much money did Earl and Larry each pay into their IRA accounts? d) Who made the better investment? Why (2 reasons)? Kim and Karl purchased a home for $205,000. They made a down payment of $25,000 and took out a mortgage on the balance with an annual interest rate of 7.8% compounded monthly for 30 years. After years they had the opportunity to refinance with an annual interest rate of 5.85% compounded monthly 20 years. a) What was their monthly payment on the 30-year mortgage? b) What did they owe after 5 years of payments? c) What is their new monthly payment? d) If they had not refinanced, how much interest would they have paid on the last 25 years of th year mortgage? e) How much interest will they pay on the 20-year mortgage? f) If they paid $2500 for fees to refinance, how much did they save