1. Jill received a 30,000 inheritance. She wants to save up for a down payment for her first home to be purchased 8 years from now. If she can earn 5% on her savings per year how much of the inheritance does she need to save now to make a $20,000 down payment 8 years from now?
2. TV’s R Yours is advertising a deal, in which you buy a flat screen TV/entertainment package for $2,388.35 (including tax) with one year before you need to pay (no interest is incurred if you pay by the end of the one year). How much would you need to deposit at the end of each month in a savings account earning 0.9% APR, compounded monthly, to be able to pay the $2,388.35 bill in one year?