# Project #64825 - finance

1.)  If one places \$60,000 in a savings account today that pays 12% per year compounded semi-annually, how

much can be withdrawn every year starting six (6) months from now so that the savings account balance

will be zero two and a half years (30 months) from now?     Please show your work!

2.) Mr. Gold N. Halo, an elderly alumnus of SU, has been thinking about establishing a trust fund for his

granddaughter’s SU tuition.  He plans to make equal, annual payments, beginning a year from today,

into an account that will yield 5 percent per year.  If he makes equal, annual payments of \$2,250, how

many payments will he have to make to have \$15,300 immediately after he makes his last payment?

[Hint:  Is this an end of period or beginning of period problem?  Better draw a picture.]

3.) Which of the following interest rates provides the larger final dollar amount in the future, if both future

a) 7.5 % per year compounded continuously?    e = 2.7183

b)    8%  per year compounded quarterly?

 Subject Mathematics Due By (Pacific Time) 04/02/2015 04:00 pm
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