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A. Melissa Wong is selling a piece of land. A real estate developer offers $100,000 now as a down payment and payments of $12,000 at

A. Melissa Wong is selling a piece of land. A real estate developer offers $100,000 now as a down payment and payments of $12,000 at the end of each quarter for the next 6 years. Assume that money can be invested at 8% compounded quarterly, what is the developer's offer worth today?

B. Mrs. Black plans to retire at age 40 and wants to withdraw $20,000 every 6 months until she is 90. If her money earns 10% compounded semi-annually, how much will she need in her account when she turns 40 to cover her anticipated needs through the age of 90?

C. Mr. Won has promised to donate $30 at the end of every quarter to charity for the next 30 years. Find the equivalent lump sum amount he would have to deposit today in an account earning 8% interest compounded quarterly to equal the balance of this annuity after 30 years.

D. Franklin High School sets aside a monthly payment of $5,000 for 4 years so they will have funds to remodel some of its classrooms. Assuming an interest rate environment of 5.2% compounded monthly, what lump sum deposited today would result in the same balance as that of the annuity after 4 years.

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