1. Find the present value of an annuity of $7000 paid at the end of each 6-month period for 2 years if the interest rate is 6%, compounded semiannually. (Round your answer to the nearest cent.)

2. With a present value of $145,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 6.6%, compounded quarterly? (Round your answer to the nearest cent.)

3. A personal account earmarked as a retirement supplement contains $242,100. Suppose $200,000 is used to establish an annuity that earns 7%, compounded quarterly, and pays $6000 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.)

4. Suppose that a 25-year government bond has a maturity value of $1000 and a coupon rate of 9%, with coupons paid semiannually. Find the market price of the bond if the yield rate is 8% compounded semiannually. (Round your answer to the nearest cent.) 5. Find the present value of an annuity due that pays $4000 at the beginning of each quarter for the next 9 years. Assume that money is worth 6.6%, compounded quarterly. (Round your answer to the nearest cent.)

6. A $2.4 million state lottery pays $10,000 at the beginning of each month for 20 years. How much money must the state actually have in hand to set up the payments for this prize if money is worth 7.1%, compounded monthly?(a) Decide whether the problem relates to an ordinary annuity or an annuity due. annuity dueordinary annuity (b) Solve the problem. (Round your answer to the nearest cent.) $