TVM - ANNUITY CONCEPT 6. Connie has $6,500 in her bank now and the bank is currently paying her 4% p.a., compounding on a quarterly basis. She plans to save another $1,000 at the end of every quarter. a) How much will she have by the end of 6 years? b) Calculate the shortfall if she wishes to buy a car worth $55,000 by then. 7. A particular investment promises a fixed returns of $5,500 at the end of each of the next 6 years. Assuming you expect an annual return of at least 12% on all your investments, answer the following: 1 What is the maximum amount you are willing to pay for this investment now? a) b) you are prepared to pay up to $27,000 for this investment, calculate the revised annual rate of return (in % p.a.) you are asking on this investment