A 30-year annuity pays 1000 semiannually ie every six


(1) You want to accumulate $1,000,000 over the next 10 years. You intend to do this by making deposits of X into an investment account at the end of each month, for 30 years. The account earns i (4) = 10%. Find X.

(2) A 30-year annuity pays $1,000 semiannually (i.e., every six months). The interest rate is i^(12) = 12%. Find the present value of this annuity 12 months prior to the first payment.

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Financial Management: A 30-year annuity pays 1000 semiannually ie every six
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