38.
What is the future value at the end of year 40of depositing $15,000 today, $3,500 at the end of years 1, 2 and 3, $5,000 at the end of years 4, 5, 6 and 7 and $4,250 at the end of years 8, 9, 10, 11 and 12 into an account that pays 9.5% p.a.?(No deposits will be made into the account after year 12).
39.
If Jill Valentine wants to fund a scholarship that will pay $15,700 per year forever at GSU, how much would Jill have to deposit today if she wants the scholarship to start paying seven(7)years from today? Assume the endowment could earn 6.25% p.a. interest forever.
40.
Assume that Randall Enzo was born today and to celebrate his birth, his parents deposited $10,000 into an account in his name. The account pays interest of 2.35 percent p.a., with monthly compounding, and it is expected to continue paying this amount forever. Assume that exactly 1.5 years after the deposit was made, Randall’s parents changed their minds and withdrew $10,000 from the account(all that remained in the account was the interest earned in the first 18 months). How much money will be in Randall’saccount on his 65th birthday?