Withdraw from the annuity

Reference no: EM133647516

Questions

1. A mortgage of $95 000 is to be amortized by monthly payments over 25 years. If the payments are made at the beginning of each month and interest is 8.5% compounded semi-annually, what is the size of the monthly payments?

2. Leo invested $67 250 into an annuity earning 4.4% compounded semi-annually. How much is he able to withdraw from the annuity at the beginning of every three months for seven years?

3. Mr. Smart wants to set up an annual scholarship by donating $50 000 in perpetuity to the scholarship fund of his university. If the ?rst payment is to be made in 5 years, and interest is 4% compounded annually, what is the amount of the annual scholarship?

Reference no: EM133647516

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