Question: 4. You want to buy new kitchen appliances 2 years from now, and you plan to save GHS 8,200 per year, beginning one year from

4. You want to buy new kitchen appliances 2 years from now, and you plan to save GHS 8,200 per year, beginning one year from today. You will deposit your savings in an account that pays 6.2% interest. How much will you have just after you make the 2nd deposit, 2 years from now?

5. You want to purchase a motorcycle 4 years from now, and you plan to save GHS 3,500 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest. Under these assumptions, how much will you have 4 years from today?

6. Your roommate in Legon Hall of University of Ghana offers to pay you an annuity of GHS 2,500 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

7. Suppose you earned a GHS 275,000 bonus this year and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?

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