4. Bert and Ernest want to begin saving for their child's college education. They estimate that they will need $115,000 in twelve years. If they can earn 2% per annum, how much must be deposited at the end of each of the next twelve years to fund the education?
5. Betty and Ernie want to begin saving for their child's college education. They estimate that they will need $190,000 in eighteen years. If they can earn 8% per annum, how much must be deposited at the beginning of each of the next eighteen years to fund the education?
6. Clovers Corporation will receive $38,000 on January 1, 2025, and each January 1 for the next five years (2026-2030). What is the present value of the six $38,000 receipts, assuming a 10% interest rate?
7. Today Ali has $1,300 to invest. Which of the following will provide the highest future value?
a) 5 years with a simple interest rate of 10%.
b) 10 years with a simple interest rate of 5%.
c) 8 years with a compound interest rate of 8%.
d) 5 years with a compound interest rate of 9%.