1. You have $320,000. You put it in an account for 10 years, then you make monthly withdrawals for the next 20 years. If interest earns 5.2% compounded semi-annually, what is the size of the monthly payment?

( hint: this is a case of deferred annuities; monthly withdrawals to semi-annual interest. So, you would use the general annuities formula)

2. You invest in a company with a quarterly $1.25 dividend. If you require a return of 8% compounded semi-annually, what is the value of the shares?

(hint: this is a general perpetuity case; use it to get the PV i.e. the value of the shares)

3. How much will you have 20 years from today if you deposit $2,000 at the end of this year, then increase your annual contributions by 2% thereafter? Interest is 5% compounded annually.