1. What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $92,410 by the end of the 8th year, if the fund earns 8% interest, compounded annually?
2. Robert Hitchcock is 40 years old today and he wishes to accumulate $524,500 by his 61st birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 40th through his 60th birthdays. What annual deposit must Robert make if the fund will earn 12% interest compounded annually?
3. Diane Ross has $28,900 to invest today at 10% to pay a debt of $82,455. How many years will it take her to accumulate enough to liquidate the debt?
4. Cindy Houston has a $25,000 debt that she wishes to repay 5 years from today; she has $15,523 that she intends to invest for the 5 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt?