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1. Find the future value of an annuity if $6000 is deposited into an account each year for 3 years and the account pays 7.3% compounded annually.

   1.   ?    $19345.97
   2.   ?    $7412.26
   3.   ?    $7398.56
   4.   ?    None of the answers given; click to see the solution.

2. Question #1 asked you to find the future value of an annuity. Continuing with this problem, and using the correct answer for the future value, how much interest was earned during the 3 year period?

   1.   ?    $1345.97
   2.   ?    $1314
   3.   ?    $13345.97
   4.   ?    None of the answers given; click to see the solution.

3. A company establishes a sinking fund in order to have $1,000,000 available in 10 years for the purchase of a piece of equipment. If the sinking fund pays 9.2% compounded annually, how much money must the company put into the account each year?

   1.   ?    $65,194.50
   2.   ?    $15,338,716.98
   3.   ?    $414,737.80
   4.   ?    None of the answers given; click to see the solution.

4. Suppose you open an account into which you deposit $200 quarterly for 10 years. If the account pays 11% compounded quarterly, how much will be in the account at the end of the 10 year period?

   1.   ?    $14,253.63
   2.   ?    $499,336,351.40
   3.   ?    $2266.55
   4.   ?    None of the answers given; click to see the solution.

5. A person is saving money each week in order to accumulate a $25,000 downpayment for a house. How much must this person deposit weekly into an account paying 13% compounded weekly if the downpayment is needed in 6 years?

   1.   ?    $52
   2.   ?    $11471.31
   3.   ?    $3003.83
   4.   ?    None of the answers given; click to see the solution.