Basim purchased a deferred annuity from an insurance company for $10 971. The money used to purchase the annuity will earn 6% quarterly. The annuity will provide 16 quarterly payments of $1000. If the first payment is to be received on October 1, 2017, when did Basim purchase the deferred annuity?

Select one:

A.

October 1, 2013

B.

October 1, 2017

C.

April 1, 2011

D.

June 1, 2014

E.

April 1, 2013

Tom started his career with Oracle with an intention to retire in 25 years. When he retired, he started receiving $66 000.00 every 6 months for 15 years, starting on the date of his retirement. How much did Tom deposit deposit in an account at the start of his career, if interest is 9.25% compounded semi-annually?

Select one:

A.

$115 594

B.

$1 449 334

C.

$1 108 432

D.

$147 332

E.

$79 360

After retirement, Andy plans to buy bonds in a perpetual fund. What amount must Andy place in a perpetual fund today, if it earns 4.8% compounded semi-annually and the first monthly payment of $500 in perpetuity will be made one year from today?

Select one:

A.

$119 629

B.

$120 396

C.

$126 244

D.

$125 000

E.

$120 873

Babar wants to withdraw $27 000.00 at the beginning of each quarter for twelve years. If the withdrawals are deferred to begin ten years from now and interest is 5.6% compounded monthly calculate the amount that must be invested today to be able to make the withdrawals.

Select one:

A.

$543 895

B.

$1 859 180

C.

$950 943

D.

$1 063 365

E.

$546 034

Sam got a job at the Brick. He plans to save $500 every month for 3 years to buy a car. The savings account earns 2.25% compounded monthly. If he puts the money in his savings account at the beginning of each month, what will be the present value of the balance in the account at the end of the three-year term?

Select one:

A.

$17 390.19

B.

$18 638.25

C.

$17 422.79

D.

$17,425.42

E.

$18 603.37