1-

You wish to retire in 10 years, at which time you want to have accumulated enough money to receive an annual annuity of $20,000 for 15 years after retirement. During the period before retirement you can earn 11 percent annually, while after retirement you can earn 13 percent on your money.

What annual contributions to the retirement fund will allow you to receive the $20,000 annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Annual Contribution_____

2-

Del Monty will receive the following payments at the end of the next three years: $18,000, $21,000, and $23,000. Then from the end of the 4th year through the end of the 10th year, he will receive an annuity of $24,000 per year.

At a discount rate of 10 percent, what is the present value of all three future benefits? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value of all future benefits______

3-

Your parents have accumulated a $140,000 nest egg. They have been planning to use this money to pay college costs to be incurred by you and your sister, Courtney. However, Courtney has decided to forgo college and start a nail salon. Your parents are giving Courtney $23,000 to help her get started, and they have decided to take year-end vacations costing $9,000 per year for the next four years. Use 9 percent as the appropriate interest rate throughout this problem.

a.How much money will your parents have at the end of four years to help you with graduate school, which you will start then?(Round your final answer to 2 decimal places.)

Funds available for graduate school______

b.You plan to work on a master's and perhaps a PhD. If graduate school costs $25,100 per year, approximately how long will you be able to stay in school based on these funds?(Round your final answer to 2 decimal places.)

Number of years_____