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1. A regular deposit of $100 is made at the beginning of eachyear for 20 years. Simple interest is calculated at i%per year forthe 20 years. At the end of the 20-year period, the total interestin the account is $840. Suppose that interest of i% compoundedannually had been paid instead. How much interest would have beenin the account at the end of the 20 years?2. Herman has agreed to repay a debt by using the followingrepayment schedule. Starting today, he will make $100 payments atthe beginning of each month for the next two-and-a-half years. Hewill then pay nothing for the next two years. Finally, afterfour-and-a-half years, he will make $200 payments at the beginningof each month for one year, which will pay off his debt completely.For the first four-and-a-half years, the interest on the debt is 9%compounded monthly. For the final year, the interest is lowered to8.5% compounded monthly. Find the size of Herman’s debt. Round youranswer to the nearest dollar.