1. Find the present value of ordinary annuity $800 per quarter for 7 years at 12%/year compounded quarterly.
a. $12,223
b. $14,896
c. $15,011
d. $10,225
2. Tom and Michelle have set up an ordinary annuity in order have $150,000 in 8 years for their children’s college education. How much should be paid semiannually into an account paying 10% compounded semiannually?
a. $6,340
b. $4,689
c. $5,860
d. $8,894