Q1

Jeffrey purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided her with payments of $2,500 at the end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it?

Q2

How much would a business have to invest in a fund to receive $15,000 at the end of every month for 6 years? The fund has an interest rate of 4.50% compounded monthly and the first withdrawal is to be made in 4 years and 1 month.