# For her daughter's university education, Carla Hackl has invested an inheritance in a fund paying 9.2% compounded

## Question:

For her daughter's university education, Carla Hackl has invested an inheritance in a fund paying 9.2% compounded quarterly. If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now, how much was the inheritance?

Momin plans to buy a house in cash instead of paying the mortgage. He plans to set aside $14400 at the end of each year for 15 years. He puts his savings in a Tax-Free Savings Account (TFSA) and invests them in a high-risk mutual fund, which has traditionally earned 12.2% annually. Money decreases in value by 2.5% per annum as well. How much will Momin have saved after 15 years?

Joshua deposited $3560.00 at the beginning of every 6 months for 11 years into a fund paying 3.5% compounded semi-annually. Fourteen years after the first deposit, he then converted the existing balance into an annuity due paying him equal annual payments for 22 years. If interest for the annuity due is 5% compounded annually, what is the size of the annual payment?

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**Related Book For**

## Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs