Mathematics of Finance John and Wendy just graduated from the Brisbane Institute of Technology. Both agree to contribute to the BIT endowment fund. John says he will give $500 at the end of each year for 9 years. Wendy wants to give one lump sum today. What lump sum can Wendy give that will equal the present value of Johns annual gifts, if the endowment fund earns 7.5% compounded continuously?

Option 6: Mathematics of Finance Find the future value of an annuity due if payments of $500 are made at the beginning of each quarter for 7 years, in an account paying 6% compounded quarterly?