Q3Abbigail wish to establish a trust fund from which her daughter can

withdraw $6,000 every six months for 15 years, when she reach 16 years old. At

the end of which time she will receive the remaining money in the trust, which

you would like to be $25,000. The trust will be invested at 6% per annum

compounded semi-annually. How large should the trust be?

Q4It is now January 1, 2018. You plan to make 5 deposits of $200 each, one

every 6 months, with the first payment being made today. If the bank pays a

nominal interest rate of 10%, but uses semi-annual compounding, how much will

be in your account after 8 years?