Question
(A) As the contestant with the longest winning streak in the history of Jeopardy, Ken Jennings won more than $2.5 million. Suppose he invested $1.6
(A) As the contestant with the longest winning streak in the history of Jeopardy, Ken Jennings won more than $2.5 million. Suppose he invested $1.6 million in an ordinary annuity that earned 4.8%, compounded monthly. How much would he receive at the end of each month for the next 25 years? Solve the problem. (Round your answer to the nearest cent.)
(B) Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly withdrawals of $2500, with the first withdrawal 3 months from now. If money is worth 7.9%, compounded quarterly, how much must be deposited now to provide for this trust? Solve the problem. (Round your answer to the nearest cent.)
(C) Suppose an individual makes an initial investment of $2,400 in an account that earns 7.2%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to $0). (Round your answers to the nearest cent.)
(a) How much is in the account after the last deposit is made? $ (b) How much was deposited? $ (c) What is the amount of each withdrawal? $ (d) What is the total amount withdrawn? $
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