A father wants to save money to pay for his son’s college education. He is depositing equal amounts of money every year at the end of each year in an account to have $120000.00 after 18 years. If the interest rate on the account is 5% compounded continuously, how much should he deposit each year? a)  $3554.62 b)  $3700.60 c)  $4215.21 d)  $3512.71

You have inherited money from a distant relative, and it will arrive in 4 separate deposits over the course of 6 years as shown below. At the same time, you're receiving an annual salary of $50,000 (an annuity). At the end of the 6th year, how much money will be in your account, if your account has an annual interest rate of 8%? Year 1: $5,000 Year 2:0 Year 3: $6,400 Year 4: $8,000 Year 5:0 Year 6: $7,500 Typed numeric answer will be automatically saved.

What amount must I deposit in the bank to receive $6,000 in twelve years if my account pays 3.5% compounded Monthly?

Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: • The bank owes Sam $100 per year forever. The 1st payment is due in 1 year. • The bank will borrow or lend money to Sam at a constant effective rate of i per year. Today, Sam calculated the present value of the payments that are due to him as X. Sam can receive his first 16 payments at the end of year 16 in a lump sum. If he does that, then the total value of the lump sum and future payments at the end of the sixteenth year is X + 2,000. Calculate X. A B с D E 3,330 3,350 3,400 3,450 3,500