1.) A newborn child receives a ?$10,000 gift toward a college education from her grandparents. How much will the ?$10,000be worth in 20 years if it is invested at 5.6% compounded? quarterly?
2.) Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period:
?$21,000 quarterly payments for 11years; interest rate 5.8%
What is the payment?
3.) Find the amount necessary to fund the given withdrawals.
Monthly withdrawals of ?$800 for 5 ?years; interest rate is 5.4?% compounded monthly