4 If Mindy deposits $12,000 into a bank account that pays 6% interest compounded semi- annually, what will the account balance be in seven years? Answer: 8151 5. If you invest $1000 every six months at 5 percent compounded sensi-ually, how mach would you accumulate at the end of 8 years (Hint: This is an ordinary anty)? Answer 6. You have the choice of two equally risk annuities, each paying $5,000 per year for 15 years. One is an annuity due and the other is an ordinary annuity. If you are going in be receiving the annuity payments, which annuity would you choose to maximize your wealth? A) the annuity due B) the ordinary annuity C) Since we don't know the interest rate, we can't find the value of the annuities and hence we cannot tell which cor is bener. D) either one because they have the same present value Answer K N M A T b x com