Gordon Freeman wants to have $32,000 in 5 years in order to purchase a new car.

(a) How much should he deposit today in an account earning 6.4%, compounded quarterly, to have the required amount in 5 years?
(b) How much interest will be earned?
(c) If he can only deposit $16,000 now, how short of $32,000 will he be?
(d) Suppose he can deposit $16,000 now in an account that compounds interest continuously. What interest rate would he need to accumulate the $32,000 in 5 years?
(e) Suppose he instead decides to make a deposit at the end of each quarter into an account earning, 6.4%, compounded quarterly. How much should he deposit each quarter to have $32,000 in 5 years?

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