1)Suppose a state lottery prize of $4 million is to be paid in 5 payments of $800,000 each at the end of each of the next 5 years. If money is worth 10%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.)

2)With a present value of $140,000, 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 6.2%, compounded quarterly? (Round your answer to the nearest cent.)

3)Find the present value of an annuity due that pays $4000 at the beginning of each quarter for the next 5 years. Assume that money is worth 5.8%, compounded quarterly. (Round your answer to the nearest cent.)

4)What amount must be set aside now to generate payments of $30,000 at the beginning of each year for the next 14 years if money is worth 5.05%, compounded annually? (Round your answer to the nearest cent.)

5)A company wants to have $40,000 at the beginning of each 6-month period for the next 4 1/2

years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.97%, compounded semiannually?

(a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity due (b) Solve the problem. (Round your answer to the nearest cent.

6)Find the present value of an annuity of $2000 per year at the end of each of 10 years after being deferred for 3 years, if money is worth 8% compounded annually. (Round your answer to the nearest cent.)

7)Suppose an annuity will pay $16,000 at the beginning of each year for the next 8 years. How much money is needed to start this annuity if it earns 7.3%, compounded annually? (Round your answer to the nearest cent.)

8)A $1.2 million state lottery pays $5,000 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 8.4%, compounded monthly?

(a) Decide whether the problem relates to an ordinary annuity or an annuity due.

annuity due or ordinary annuity

(b) Solve the problem. (Round your answer to the nearest cent.)

9)Find the present value of an annuity of $5000 paid at the end of each 6-month period for 2 years if the interest rate is 8%, compounded semiannually. (Round your answer to the nearest cent.)

10)A homeowner planning a kitchen remodeling can afford a $900 monthly payment. How much can the homeowner borrow for 4 years at 9%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.)

11)The problem describes a debt to be amortized. (Round your answers to the nearest cent.) A man buys a house for $340,000. He makes a $150,000 down payment and amortizes the rest of the purchase price with semiannual payments over the next 10 years. The interest rate on the debt is 12%, compounded semiannually.

(a) Find the size of each payment. $ (b) Find the total amount paid for the purchase. $ (c) Find the total interest paid over the life of the loan.

12)A debt of $9000 is to be amortized with 6 equal semiannual payments. If the interest rate is 7%, compounded semiannually, what is the size of each payment? (Round your answer to the nearest cent.)

13)A man buys a car for $32,000. If the interest rate on the loan is 12%, compounded monthly, and if he wants to make monthly payments of $600 for 36 months, how much must he put down? (Round your answer to the nearest cent.)

14)A man buys a car for $32,000. If the interest rate on the loan is 12%, compounded monthly, and if he wants to make monthly payments of $600 for 36 months, how much must he put down? (Round your answer to the nearest cent.)

15)A recent graduate's student loans total $17,000. If these loans are at 4.6%, compounded quarterly, for 8 years, what are the quarterly payments? (Round your answer to the nearest cent.) $

16)John Fare purchased $24,000 worth of equipment by making a $4000 down payment and promising to pay the remainder of the cost in semiannual payments over the next 6 years. The interest rate on the debt is 6%, compounded semiannually. Find the following. (Round your answers to the nearest cent.) (a) the size of each payment

(b) the total amount paid over the life of the loan

(c) the total interest paid over the life of the loan