Roy wants to attend Colorado State University. Six years from today he will need $28,000. If Roy's bank pays 4% interest compounded semiannually, what must Roy deposit today to have $28.000 in 6 years? Joe wants to buy a truck in 4 years. He estimates the truck will cost $17,000. If Joe invests $11,000 now at 10% interest compounded semiannually, will Joc have enough money to buy his truck at the end of 4 years? Mel is having a difficult time deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% compounded quarterly. Mel has $10,000 to invest. He expects to withdraw the money at the end of 4 years. Which bank gives Mel the better deal? Patricia and Joc are divorced. The divorce settlement stipulated that Joc pay $525 at the end of each month for their daughter Suzanne until she turns 18 in 4 years. How much must Joe set aside today to meet the settlement? Interest is 6% compounded monthly Alice has decided to invest $400 quarterly for 4 years in an ordinary annuity at 8% compounded quarterly. As her financial advisor, calculate the total cash value of the annuity at the end of year 4 Paul is selling a piece of land. He has received two solid offers. Jason has offered a $60,000 down payment and $50,000 per year for the next 5 years. Kevin offered 535,000 down and S$5,000 per year for the next 5 years. If Paul can invest his money at 7% compounded annually, which offer should Paul accept? GU Corporation must buy a new piece of equipment in 5 years that will cost $88,000. The company is setting up an account so it can set aside money to finance the purchase. What will the quarterly deposit be if the account earns 8% interest compounded quarterly? Lynn bought a computer for $1,800, Lynn made a $500 down payment and financed the balance at 8% compounded monthly for 48 months. What is her monthly payment? Prepare an amortization schedule for the first three months of the loan in (8). Payment Monthly Number payment Portion to interest Portion to principal Balance of loan outstanding 2