. Allie Fox is moving to Central America. Before he packs up his wife and son he purchases an annuity that guarantees payments of $10 000 per year in perpetuity. How much did he pay if annual interest rate is 12%.

2. Amy Jolly deposited $2 000 in a savings account. The annual rate is 10 per cent compounded semi-annually. How many years will it take for her money to grow to

$2 680.20?

3. Bridget invested $5 000 in a growth mutual fund and in ten years her investment had

grown to $15 529.24. What annual rate of return did Bridget earn over this ten-year

period?