1. A relative has decided to establish a bank account for your newborn daughter that will pay for some of her future college expenses. It is intended that the amount be worth $10,000 18 yrs. from now. Assuming that the account will earn 7.6%, compounded quarterly, how much money should be deposited into the account?
2. After moving to the United States from Europe, the Taylors invested their savings of $4000 into an account earning 7.2% interest, compounded monthly. How much interest was earned by the account during each of the first three months?