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4. Find the future value of an annuity of $3,500 per year for 20 years if the interest rate is 8%. 5. If you want
4. Find the future value of an annuity of $3,500 per year for 20 years if the interest rate is 8%. 5. If you want to have $2,500,000 in an account in 30 years, how much do you need to invest annually if you can earn a 9% average return on your investment? (Hint: You are computing the PMT) 6. At what annual interest rate must $30,000 be invested so that it will grow to $500,000 in 20 years? 7. If you wish to accumulate $200,000 in 10 years, how much must you deposit today in an account that pays an annual interest rate of 10% ? 8. Tammy Smith's employer offers its employees a two-month unpaid vacation after 7 years of employment. Tammy wants to go to New Zealand for her time off but has just started working for the firm. She estimates that her trip will cost $25,000. She plans to make an annual deposit of $2,500 and the account will pay her a rate of 9% annually. Will this deposit be enough to pay for her trip
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