Question: 1. A couple wish to set up an annuity that will provide 6 monthly payments of $3000 while they take an extended cruise. How much

1. A couple wish to set up an annuity that will provide 6 monthly payments of $3000 while they take an extended cruise. How much of a $15,000 inheritance must be set aside if they plan to leave in 5 years and want the first payment before they leave? Assume that money is worth 7.8%, compounded monthly.
2. What lump sum would have to be invested at 9%, compounded semiannually, to provide an annuity of $10,000 at the end of each half-year for 10 years?

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