ANNUITY AND AMORTIZATION

TOPIC: ANNUITY AND AMORTIZATION DIRECTIONS: Solve the following problems and illustrate the cash flow diagram. 1. What is the present and accumulated amount of ten-year annuity paying 516000 at the end of each year, with interest at 5% compounded semi-annually? 2. A man will deposit $200 with a savings and loan association at the beginning of each 3 months of 9 years. If the association pays interest at the rate of 5.5% quarterly. Find the sum to his credit just after the last deposit. 3. What amount of money invested today at 15% interest can provide the following scholarships: $30,000 at the end of each year for 6 years, $40,000 for the next 6 years and 550000 thereafter