What is the interest rate, i, per period? A small business predicts that their computer system will need an upgrade in software and equipment in 5 years. To prepare for this expense, management decides to invest $1,000 at the beginning of each semiannual period for 5 years at 8.4% compounded semiannually. How much will be saved after 5 years?

a. 2.1% b. 4.2% c. 8.4% d. 9.6% Recently, Margadarsi Income Life offered and annuity that pays 7% compounded semiannually. If $1200 is deposited in this annuity at the beginning of every semiannual, how much is in the account after 8 years?

a. $23,625 b. $29,489 c. $28,128 d. $26, 046