Akeem Joffer hopes to a new cabin on Webb Lake in Maine. Akeem has $$13,000$ saved today and wants to save $$7,000$ every year for the next nine years. Assume Akeem can earn $11\%$ on his investments. Compute the amount Akeem expects to have available to purchase the cabin in $9$ years.

$5.$ Reggie Hammond has $$300,000$ in cash located in a suitcase in the trunk of his car.Reggie deposits this amount in Gibraltar Bank. The bank offers a $6\mathrm{.}7\%$ annual rate and pays interest quarterly. Reggie hopes to have $$1,600,000$ at the end of five years.

Compute the quarterly savings Reggie must deposit into this account in order to achieve his goal.

$6.$ Billy Ray Valentine promises to pay his friend Louis Winthorpe a deferred annuity of $$60,000$ beginning in year five and continuing through year eleven plus a three$-$year deferred annuity of $$7,000$ that begins in year $15.$Interest rate is $8\mathrm{.}2\%.$

Compute the amount Billy Ray needs today to fulfill his obligation to his friend

Answer rating: 100% (QA)

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