1.How much can be paid in scholarships at the end of each year if $350,000 is deposited in a trust fund and interest is 7.8% compounded quarterly?

2.Municipal Hydro offers to acquire a right-of-way from a property owner who receives annual lease payments of $2950 due in advance. What is a fair offer if money is worth 8.6% compounded quarterly?

3.The owner of a hotel borrowed $36,000 at 7.8% compounded semi-annually and agreed to repay the loan by making payments of $1050 at the end of every 4 months.

a.How much payments will be needed to repay the loan?

b.How much will be owed at the end of 5 years?

c.By the end of 5 years of payments, what is the total interest paid?

4.The first quarterly payment of $250 in a six-year annuity will be paid 4.5 years from now. Based on a discount rate of 12% compounded monthly, what is the present value of the payments today?