1. What will be the maturity value of $30,000 deposited in a three-year certificate of deposit that earns 8 percent interest compounded semiannually?
2. Determine the future value of the following annuities; assume each annuity can earn 10 percent interest.
A. Six annual payments of $15,000 beginning one year from today.
B. 12 semiannual payments of $7,500 beginning six months from today.
C. 24 quarterly payments of $3,750 beginning three months from today.
D. Explain why the results differ.
Determine the present value of the following annuities if the annuity earns 8 percent.
A. Five annual payments of $10,000 beginning one year from today.
B. 20 quarterly payments of $2,500 beginning three months from today.
C. 10 semiannual payments of $5,000 beginning six months from today.
D. Explain why the results differ.