1. You decide to make a subscription to the new streaming service "Go- Coprime". The monthly subscription fee is $16. Assume that Go- Coprime deposits your subscription fee into a corporate account earn- ing 2.8% p.a. compounded monthly. (a) Go-Coprime offers the first month of streaming for free, such that your payments start at the end of the first month. What is the future value to Go-Coprime of your subscription after 24 months? (Give your answer correct to the nearest cent.) (b) What is the total amount of interest that Go-Coprime has earned from your subscription after 24 months? (Give your answer cor- rect to the nearest cent.) (c) How many months would it take for Go-Coprime to have earned $500 from your subscription? (Round your answer up to the next whole month.) (d) Suppose that Go-Coprime wants to increase its subscription fee so that it will earn $500 (per customer) after 24 months. What should the fee be? (Give your answer correct to the nearest cent.) (e) Suppose that you are a returning customer to Go-Coprime and so did not get the first month free and instead had to make the $16 payments starting at the beginning of the first month. What is the future value to Go-Coprime of your subscription after 24 months? (Give your answer correct to the nearest cent.)
