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1. What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $3,000 is made at

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1. What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subs equent withdrawals increase at the rate of 6% per year over the previous year's rate if (a) the interest rate is 8% compounded annually? (b) the interest rate is 6% compounded annually? 5. What will be the amount accumulated by each of the given present investments? (a) $5,500 in 10 years at 9% compounded semi-annually. (b) $12,500 in 15 years at 8% compounded quarterly. (c) $13,600 in seven years at 6% compounded monthly. 4. A financial institution is willing to lend you $1,000. However, you must repay $1,080 at the end of one week. (a) what is the nominal interest rate? (b) what is the effective annual interest rate? 6. What is the present worth of each of the given series of payments? (a) $1,700 at the end of each six month period for 10 years at 9% compounded semi-annually. (b) $9,000 at the end of each quarter for five years at 8% compounded quarterly. (c) $4,000 at the end of each month for eight years at 9% compounded monthly. 7. A building is priced at $255,000. If a buyer makes a down payment of $55,000 and a payment of $2,000 every month thereafter, how many months will it take for the buyer to completely pay for the building? Interest is charged at a rate of 9% compounded monthly. 2. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? building? Interest is charged at a rate of 9% compounded monthly 8. What is the future worth of an equal-payment series of $3,000 per year for eight years if the interest rate is 7% compounded continuously? 9. What is the future worth of each of the given series of payments? (a) $8,000 at the end of each quarter for 6 years at 12% compounded quarterly. (b) $6,000 at the end of each month for 5 years at 6% compounded monthly

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