1. Alan Smith will receive $83,670 on 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 12% (compounded semiannually), what is the present value of this amount today?

2. Whispering, Inc. owes $39,680 to Ritter Company. How much would Whispering have to pay each year if the debt is retired through four equal payments (made at the end of the year), given an interest rate on the debt of 8%?

3. The Kellys are planning for a retirement home. They estimate they will need $220,000 4 years from now to purchase this home. Assuming an interest rate of 10%, with four equal amounts being deposited at the beginning of the period. What amount must be deposited at the beginning of each period?

4. In a book named Treasure, the reader has to figure out where a 2.2 pound, 24 kt gold horse has been buried. If the horse is found, a prize of $18,200 a year for 20 years is provided. The actual cost to the publisher to purchase an annuity to pay for the prize is $179,000. What interest rate (to the nearest percent) was used to determine the amount of the annuity? (Assume end-of-year payments.)