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7- Pat is a 10-year-old computer hobbyist. She has a paper route that nets her $135 each month in profit and she wants to start saving to buy a new computer. Assume she can find a bank that pays 0.75% interest monthly, she will deposit the entire $135 at the end of each month, and she wants to buy the new computer at the end of 1 year.
• Draw the cash-flow diagram for this situation.
• Name the proper compound interest formula to apply to this problem.
• Explain how much money will Pat have available to spend on her new computer after 1 year?
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