Bea wants to accumulate $85,000 in a fund at the end of 15 years (t = 15). She plans to deposit $1200 + tX at the end of each year for each of the first 10 years (t=1,2,3,...,10) and $1000 at the end of each of the last five years (t=11,12, ... ,15). Bea's fund will earn an interest at an annual effective rate of 7%. Hint: Draw a diagram. This will involve both level annuities and an increasing annuity.

Bea wants to accumulate $75,000 in a fund at the end of fifteen years (t=15 t = 15). She plans to deposit $1,200 + tX t X at the end of each of the first 10 years (for t=1,2,3...,10 t = 1 , 2 , 3 . . . , 10) and $1,000 at the end of each of the last 5 years. Bea's fund will earn interest at an effective annual rate of 7%.

Determine X.

		<500
		500 but < 550
		550 but < 600
		600 but < 650
		650

A loan of $17217.35 is to be repaid with 10 annual payments at the end of each year. The interest rate is an annual effective rate of 5%. The first payment is $1000. Each succeeding payment is increased by $300 (with the last payment being $3700 at t=10). Determine the amount of principal in the 5th payment. Hint: You can use either the retrospective method to find Balances. Note: P₅ = B₄ - B₅ so you will need to find two balances. Also note the payment structure is a (P,Q) annuity so the formula for principal for level payments will not work. As the number of payments is small, you may also choose to "brute force" the answer.

		< 1000
		1000 but < 1250
		1250 but < 1500
		1500 but < 1750
		1750