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ISE 13.3 MyLab Math If you choose, you can use Excel's PV function (present value) to answer the questions indicated. Answer each of the following questions. 1. An annuity with a cash value of $14 500 earns 7% compounded semi-annually. End-of-period, semi-annual payments to the beneficiary are deferred for 7 years, and then continue for 10 years. How much is the amount of each payment? Reference Example 13.3A 2. Zheng contracted to write a technical manual for a client. Upon completion of the manual, he agreed to accept $220.00 at the end of each month for 3 years. If the payments are deferred for 15 months, and interest is 8.10% compounded monthly, what is the current value of the contract? 3. The Omega Venture Group needs to borrow to finance a project. Repayment of the loan involves payments of $8500 at the end of every three months for eight years. No payments are to be made during the development period of three years. Interest is 9% compounded quarterly. (a) How much should the Group borrow? (b) What amount will be repaid? (c) How much of that amount will be interest? crest ISE 13.3 MyLab Math If you choose, you can use Excel's PV function (present value) to answer the questions indicated. Answer each of the following questions. 1. An annuity with a cash value of $14 500 earns 7% compounded semi-annually. End-of-period, semi-annual payments to the beneficiary are deferred for 7 years, and then continue for 10 years. How much is the amount of each payment? Reference Example 13.3A 2. Zheng contracted to write a technical manual for a client. Upon completion of the manual, he agreed to accept $220.00 at the end of each month for 3 years. If the payments are deferred for 15 months, and interest is 8.10% compounded monthly, what is the current value of the contract? 3. The Omega Venture Group needs to borrow to finance a project. Repayment of the loan involves payments of $8500 at the end of every three months for eight years. No payments are to be made during the development period of three years. Interest is 9% compounded quarterly. (a) How much should the Group borrow? (b) What amount will be repaid? (c) How much of that amount will be interest? crest

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