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Judge Masaou recently graduated with Business Administration. He is suffering from a malady common to new graduates $---$Car Fever. Judge is trying to decide between two automobiles a $$20,000ZZZ$ or a $$15,000xxx.$ Judge must finance his purchase over a threeyear period regardless of his choice of cars.

a$.)$ Assuming an interest rate of $12\%,$ what will Judge's annual payment be on each car? $($You may wish to calculate monthly payments to be more realistic.$)$

b$.)$ Judge plans to buy a new car every three years. If the difference in the price of cars is maintained through Judge's $40-$year career, how much could he accumulate if he always resale values.$)$

Taylor Stack smokes a pack of cigarettes a day. Each pack of cigarettes costs $$2\mathrm{.}50.$ Taylor is wondering how much money she could accumulate if she quit smoking and invested the money.

a$.)$ Assuming the saved amount is invested at the end of the year at a $6\%$ rate of return, how much could she accumulate during the next $40$ years. $($Assume $365-$day yea, r ignore taxes.$)$

b$.)$ How much could Taylor accumulate If she was able to earn $10\%?$

c$.)$ If Taylor earns $6\%$ on the accumulate a mount from $($b$)$ above, how much can she withdraw each year for the next $20$ years before depleting her accumulation? $($ignore taxes.$)$

Angie Divine is considering opening a savings account as precaution against unexpected year. Taylor can earn $8\%$ paid annually

a$.)$ In which of the institution will Angie earn the most interest on a $$2,000$ deposit?

b$.)$ In which institution should Angie deposit her money?

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