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1 ) Cameron purchased an annuity that had an interest rate of 2 . 7 5 % compounded semi - annually. It provided him with

1) Cameron purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided him with payments of $2,000 at the end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1 month, how much did he pay for it?
2) Melanie invested his savings in a bank at 3.00% compounded monthly. How much money did he invest to enable withdrawals of $4,000 at the beginning of every 6 months from the investment for 6 years, if the first withdrawal is to be made in 10 years?
3) Kristen set up a fund that would pay his family $4,000 at the beginning of every month, in perpetuity. What was the size of the investment in the fund if it was earning 3.00% compounded semi-annually?
4) A college plans to set up an endowment fund that will provide a scholarship of $5,000 at the end of every quarter, in perpetuity. How much should the college invest in the fund, if the fund earns 3.75% compounded quarterly?
5) If the market value of a telecommunications share is $296.15, calculate the year-end dividends that it should be able to pay in perpetuity if money is worth 4.75% compounded semi-annually.
6) The Patchmans have decided to invest in a college fund for their young son. They invested $30,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.00% compounded monthly and the annuity payments are deferred for 12 years, what will be the size of the monthly payments?

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