Part III:Joe is not happy with the amount he accumulates in part II. Help Joe find out how muchmoney he needs to put away each month so that he could accumulate $20,000 at the endof three years. (This is not counting the money he gets in Part I.)Part IV: Installment PaymentJennifer wants to buy a $30,000 car. She has $5,000 to put as a down payment and needsto borrow $25,000. Help Jennifer find out what her monthly payment will be if she plansto pay monthly over a 5-year period at a 6% interest rate.1. Divide the interest rate (in decimal form) by the number of payments per year.Save the result for the next step and a future step.Add 1 to the result of step 1.2.3. Raise the result of step 2 to the power equal to the total number of payments to bemade (the product of the number of years and the number of payment per year.)Save the result for the next step and for a future step.4.Subtract 1 from the result of step 3.5. Divide the result of step 3 by the result of step 4.6. Multiply the result of step 5 by the amount of the original loan.7. Multiply the result of step 6 by your result from step 1. The answer is the amountof the installment payment.Part V:Let P denote the original amount of the loan, let r denote the annual interest rate, let ndenote the number of payments per year, and let t denote the number of years. Use theseven steps given in part IV to find an algebraic formula for computing the paymentinstallment amount m.(Part V is going to have 7 steps just like part IV, but this time, you will have variablesand will be coming up with a formula at the end instead of a dollar amount. Show all 7steps numbered 1 through 7 just like in part IV.) Part I:Joe just graduated from College and has found a nice job. As a graduation gift his fathergave him $5000 as seed money for a down payment for a condominium that Joe plans topurchase in three years. Joe wants to invest his $5000 into a savings account that giveshim the best rate.Bank A has an interest rate of 6.02% compounded quarterly.Bank B has an interest rate of 6% compounded monthly.Which bank's savings account should Joe go with so that he can earn the most money atthe end of the three years?Hint: When P. is invested in a savings account for t years under the interest rate r (indecimal form), and the interest is compounded n times each year, and then the endbalance is computed byntr1 + 7 ) ".P= P1+Part II:Since Joe plans to buy a condominium in three years, he needs to save more money forthe down payment. Joe goes to Bank B and wants to open another savings account wherehe plans to deposit $400 every month. This account also pays 6% compounded monthly.How much money will he have saved at the end of three years in this account?Hint: This is an ordinary annuity problem. The future value, A, of an annuity is foundwith the formulant1+-144nA=mrn(Parts III, IV, and V are on the back of this page.)

Question

Part III:Joe is not happy with the amount he accumulates in part II. Help Joe find out how muchmoney he needs to put away each month so that he could accumulate $20,000 at the endof three years. (This is not counting the money he gets in Part I.)Part IV: Installment PaymentJennifer wants to buy a $30,000 car. She has $5,000 to put as a down payment and needsto borrow $25,000. Help Jennifer find out what her monthly payment will be if she plansto pay monthly over a 5-year period at a 6% interest rate.1. Divide the interest rate (in decimal form) by the number of payments per year.Save the result for the next step and a future step.Add 1 to the result of step 1.2.3. Raise the result of step 2 to the power equal to the total number of payments to bemade (the product of the number of years and the number of payment per year.)Save the result for the next step and for a future step.4.Subtract 1 from the result of step 3.5. Divide the result of step 3 by the result of step 4.6. Multiply the result of step 5 by the amount of the original loan.7. Multiply the result of step 6 by your result from step 1. The answer is the amountof the installment payment.Part V:Let P denote the original amount of the loan, let r denote the annual interest rate, let ndenote the number of payments per year, and let t denote the number of years. Use theseven steps given in part IV to find an algebraic formula for computing the paymentinstallment amount m.(Part V is going to have 7 steps just like part IV, but this time, you will have variablesand will be coming up with a formula at the end instead of a dollar amount. Show all 7steps numbered 1 through 7 just like in part IV.) Part I:Joe just graduated from College and has found a nice job. As a graduation gift his fathergave him $5000 as seed money for a down payment for a condominium that Joe plans topurchase in three years. Joe wants to invest his $5000 into a savings account that giveshim the best rate.Bank A has an interest rate of 6.02% compounded quarterly.Bank B has an interest rate of 6% compounded monthly.Which bank's savings account should Joe go with so that he can earn the most money atthe end of the three years?Hint: When P. is invested in a savings account for t years under the interest rate r (indecimal form), and the interest is compounded n times each year, and then the endbalance is computed byntr1 + 7 ) &#34;.P= P1+Part II:Since Joe plans to buy a condominium in three years, he needs to save more money forthe down payment. Joe goes to Bank B and wants to open another savings account wherehe plans to deposit $400 every month. This account also pays 6% compounded monthly.How much money will he have saved at the end of three years in this account?Hint: This is an ordinary annuity problem. The future value, A, of an annuity is foundwith the formulant1+-144nA=mrn(Parts III, IV, and V are on the back of this page.)

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