Determine the amount of money that must be invested now (time 0) at 10% nominal interest, compounded monthly, to provide an annuity of $5,000 per year for 15 years, starting five

years from now. The interest rate remains constant over this entire period of time.

A person needs $17,700 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 12 years. The annual interest rate being charged is 13% compounded continuously. What is the amount of each payment?