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Mixed Practice - Anything Goes! 9) You wish to save up to buy a panda. You initially invest $3,000 into an account paying 2.4% com- pounded daily. Five years later you find another account paying 4.9% interest compounded weekly, a clearly better deal. So you move all of your money over to the new account and hold it there for another 5 years. At the end of this ten year savings plan, how much money do you have to purchase your panda? (Hint: A panda costs approximately $4172.53) (Second Hint: the first hint is not a real world indication of panda costs.) 10) Two siblings invest in two separate accounts planning for retirement. Their investment strategies and accounts are pretty different. Alice invests a lump sum of $120,000 into account A, which pays 2.18% compounded daily. Bob invests into account B, which is an annuity account. He deposits $200 each month into an account paying 3.8%. After 50 years the siblings both retire on the same day and go out to celebrate. They agree that whoever has the most in savings should buy a nice meal for the other equal to the difference in the two accounts. Who is buying the dinner and how much will it cost? (Hint: A nice Kobe steak can go for around $1,000 dollars) (Second Hint: This one is truel) 11) You start a savings account by investing $55,000 dollars into an account that pays 4.4% com- pounded monthly. Fifteen years later you use everything in that account to make a down payment on a house costing $325,000 and finance the remaining cost by taking out a 20 year mortgage charging 6.8% interest. Find the monthly payment of the mortgage. (Hint: In the year 1670 Clemens X was elected to the papacy.)

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