#1

Upper A company wants to deposit a lump sum now that will give the same future value in 24 years as 24 year-end payments of $1000 invested at 2 % compounded annually. What is the amount of the lump sum assuming the same 2 % annual compounding?

#2

A student needs $4000 every six months to pay living expenses while at college. It will take him 8 years to complete his degree. What amount should he set aside today in an account earning 5% per year compounded semiannually to meet his needs?

#3

Mr. Roberts is retired and wishes to set up a 12-year annuity with quarterly payments of $6000 for the care of his disabled son. Find the amount he should deposit today at 8% interest compounded quarterly.

#4

Bob estimates that his daughter's college needs, beginning in 8 years, will be $3500 at the end of each quarter for 4 years. (a) Find the total amount needed in 8 years, assuming 6% compounded quarterly. (b) Will he have enough money available in 8 years if he invests $700 at the end of each quarter for the next 8 years at 6% compounded quarterly?

Answer A?

Answer B?