Time value of money selected problems for practice.

$1.$ Choose the best annuity below.

Annuity

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Annual withdrawals benefit

Years

A

$30,000$

$3,100$

$20$

B

$25,000$

$3,900$

$10$

C

$40,000$

$4,200$

$15$

D

$35,000$

$4,000$

$12$

$$

$2.$ Sun Rise Industries invest funds for Mrs$.$ Moran for the next $12$ years at a rate of $9\%,$ which she will withdraw for the following $20$ years with an applied rate of $12\%.$ If the arrangement is for Mrs$.$ Moran to withdraw $42,000$ per year;

a$.$ How much Sun Rise Industries must invest

b$.$ How much do they need to invest if the rate is $10\%$

c$.$ What about if she receives a $42,000$ perpetuity?