Part 1.

Suppose $21,000 is invested at an annual rate of 3% for 11 years.

Find the future value if interest is compounded as follows.

a. Annually

b. Quarterly

c. Monthly

d. Daily (365 days)

e. Continuously

Part 2.

Find the lump sum deposited today that will yield the same total amount as payments of $19,000 at the end of each year for 13 years, at an interest rate of 4% compounded annually.

Part 3.

Find the present value of an ordinary annuity which has payments of $2300 per year for 14 years at 5% compounded annually.