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Finance: Problem Set 2 Directions: 1. Solve the following problems. Hand write your solutions and explanations on your own paper. Do not write answers on this page. 2. Show your work AND explain your reasoning using complete English sentences. Explanations must directly follow the solution for each part of the problem. 3. You must write your name on the top right of the paper you turn in. 4. You must write the title of this problem set on the top of your paper. 5. Turn in your solutions following the directions in the assignment information on Canvas. 1. Meagan invests $1,200 each year in an IRA for 12 years in an account that earned 5% compounded annually. At the end of 12 years, she stopped making payments to the account, but continued to invest her accumulated amount at 5% compounded annually for the next 11 years. a. [3 pts) What was the value of the IRA at the end of 12 years? b. [2 pt] What was the value of the investment at the end of the next 11 years? 2. Suppose Miss Roxanne Davenport is 25 years old right now and puts away $1,800 per quarter in an account that returns 6% interest. a. [3 pts) How much will be in the account when she turns 65? b. [1 pt] What is her total contribution to the account? C. (1 pts] How much interest did she earn

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