5. Ms. Saver expects to receive a deferred annuity of $20,000 a year for 10 years that is deferred 5 years. What is the present value of the annuity if money is worth 8%?

a. $91,335.00

b. $171,190.00

c. $85,030.00

d. $36,988.00

6. How much you need to deposit each year at 6.5% effective for 10 years to be worth $175,000 ten years later after the last payment?

a. $7,358

b. $7,413

c. $6,909

d. $7,890

7. Find the present value of $10,500 to be received every 6 months for 5 years if the first payment is made in 2 years and money is worth 10.5% converted semiannually?

a. $114.604.74

b. $68,703.92

c. $39,132.57

d. $65,276.88