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5.2 Exercises on In Exercises 1-8, find the amount (future value) of each ordinary annuity. quarterly 5. $600/quarter for 9 years at 5%/year compounded quarterly

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5.2 Exercises on In Exercises 1-8, find the amount (future value) of each ordinary annuity. quarterly 5. $600/quarter for 9 years at 5%/year compounded quarterly munded monthly 11. $1200/semiannual period for 6 years at 5%/year com- pounded semiannually 21. INVESTMENT ANALYSIS Luis has $150,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to "roll over his assets to a new account. Luis also plans to put $3000/quarter into the new account until his retirement 20 years from now. If the new account earns interest at the rate of 4.5%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Hint: Use the compound interest formula and the annuity formula. 25. Auto FINANCING Lup made a down payment of $8000 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a loan from her bank at the rate of 6%/year compounded monthly. Under the terms of her finance agreement, she is required to make payments of $420/month for 36 months. What is the cash price of the car? 29. PURCHASING A HOME Refer to Exercise 27. If the Johnsons decide to secure a 15-year mortgage instead of a 30-year mortgage, what is the price range of houses they should consider when the local mortgage rate for this type of loan is 5%? 33. Roth IRAs Suppose that Jacob deposits $3000/year for 10 years into a Roth IRA earning interest at the rate of 5%/year, compounded annually. During the next 10 years, he makes no withdrawals or no further contributions, but the account continues to earn interest at the same rate. How much will Jacob have in his retirement account at the end of the 20-year period

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