A

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A.)

1. A sequence of quarterly payments of $5000 each with the first one due at the end of 1 year and 3 months is stated in a contract. If the last payment is due at the end of 10 years, what is the present value of the annuity? Assume that the money is worth 8% compounded quarterly. What is the (a) total number of payments, (b) number of conversion periods in the period of deferral, (c) interest rate period, and (d) present value of loan?
2. If money is worth 8% compounded annually, find the present value of a sequence of 15 annual payments of $20,000 each, the first of which is due at the end of the third year. What is the (a) total number of payments, (b) number of conversion periods in the period of deferral, (c) interest rate period, and (d) present value of loan?

B.)

1. Rey is 33 years old and just received an inheritance from his grandparents. He wants to invest an amount of money today such that he can receive $5,000 at the end of every month for 180 months when he retires at age 65. If he can earn 9% compounded annually until age 65 and then 5% compounded annually when the fund is paying out, how much money must he invest today?
2. On the day of their granddaughter's birth, Yolanda and Eduardo deposited $3,000 into a trust fund for her future education. The fund earns 6% compounded monthly. When she turns 18, they then want it to make payments at the end of every quarter for five years. If the income annuity can earn 4.5% compounded quarterly, what is the amount of each annuity payment to the granddaughter?