Eric Coleman invested $2500 four times a year in an annuity due at Southern Trust Company for a period of 4 years at an interest rate of 12% compounded quarterly. Using the ordinary annulty table, calculate the total value of the annuity due at the end of the 4-year period.

Two annuities are available for purchase that your client has identified. The first annuity pays $7,000 each six-month period over a 5-years period, at a nominal rate of 9% p.a. The annuity has an annual fee of $300, paid at the beginning of each year. The second annuity pays $1,000 each month, again over 5 years at a nominal rate of 10% p.a. and does not have an annual fee. If each of the annuities cost $50,000, identify which of the annuities you would recommend to your client.

On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual payments. Interest is 10%, compounded semiannually. Compute the equal semiannual amounts that Philip will receive assuming that the first withdrawal is to be received on:July 1, Year 4

Tom Moore invested $2000 twice a year in an annuity due at Pacific Securities Company for a period of 3 years at an interest rate of 6% compounded semiannually. Using the ordinary annuity table, calculate the total value of the annuity due at the end of the 3-year period.