3) You have just received $100,000 as winning from the lottery. You decided to put all the winnings into

a fixed deposit account that will mature in 5 years. The account pays 6 percent per year, compounded

semi-annually. How much will you have at end of 5 years?

4)

Today is the beginning of the year. You just purchased a 30-year annuity at a cost of $400,000. The

annuity will pay an interest rate of 6 percent a year compounded annually and make equal annual

payments at the end of each of the next 30 years. What is the amount of each payment?