Solve the following application problems using 360-day years where applicable. 9. At 58, Thomas Jones knows that he needs to save more. He decides to invest $300 per quarter in a mutual fund he hopes will earn 10% compounded quarterly. Find the accumu- lated amount at age 65. 111.11 10. 10. A public utility needs 500 million in 5 years for a major capital expansion. What annual payment must the firm place into a sinking fund earning 5% per year in order to accumu- late the required funds? (11.3) CHAPTERS 11-12 Cumulative Review 517 11. Jerry Walker purchased 100 shares of stock at $23.45 per share. The company had earn- ings of $1.56 and a yearly dividend of 5.35. Find (a) the cost of the purchase ignoring commissions, (b) the price-earnings ratio to the nearest whole number, and (c) the dividend yield. [11.4) 19. 19. County Squire Electrical lost a lawsuit and must pay the injured party $35.000 at the end of each semiannual period for 2 years. If the funds earn 4% per year compounded semian- nually, find the amount that needs to be set aside today to fulfill this obligation. [11.21 20. 20. James Booker signs an employment contract that guarantees him $35,000 at the end of each year for 3 years when he retires in 4 years. If funds earn 8% per year, find the present value needed today to meet the eventual payment stream. [10.3 and 11.2] 21. Explain the terms present value future value, and annuity