16. You have just received $185,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.8% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)20.In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

$1000 monthly at 4.2% for 20 years.

21.In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund. (Round your answer to the nearest cent.)

Monthly deposits earning 6% to accumulate $9000 after 10 years. 22. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund. (Round your answer to the nearest cent.)

Yearly deposits earning 12.6% to accumulate $8500 after 12 years.

23. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.)

$295 monthly at 5.3% to accumulate $25,000.

24. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.1%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.)

Joe

$

Jill25. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

How much must you invest each month in a mutual fund yielding 12.6% compounded monthly to become a millionaire in 10 years? (Round your answer to the nearest cent.)26. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

The Oseola McCarty Scholarship Fund at the University of Southern Mississippi was established by a $130,000 gift from an 87-year-old

woman who had dropped out of sixth grade and worked for most of her life as a washerwoman. How much would she have had to save each week in a bank account earning 3.8% compounded weekly to have $130,000 after 75 years? (Round your answer to the nearest cent.)28. Calculate the present value of the annuity. (Round your answer to the nearest cent.)

$1900 monthly at 6.9% for 30 years. 29.Determine the payment to amortize the debt. (Round your answer to the nearest cent.)

Monthly payments on $110,000 at 3% for 25 years.

30.Determine the payment to amortize the debt. (Round your answer to the nearest cent.)

Quarterly payments on $16,500 at 3.4% for 6 years.

31.Find the unpaid balance on the debt. (Round your answer to the nearest cent.)

After 7 years of monthly payments on $190,000 at 5% for 25 years.

32.The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years. If the prize money is guaranteed by AAA bonds yielding 5% and is placed into an escrow account when the contest is announced 1 year before the first payment, how much do the contest sponsors have to deposit in the escrow account? (Round your answer to the nearest cent.)33. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $38,000, so he figures he should get enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the long-term interest rate is 6.6%, what is the present value of John’s future annual earnings? (Round your answer to the nearest cent.)

$

Rounding up to the next $50,000, how much life insurance should he buy? (Round your original answer to the nearest $50,000.)

$ 34. A MasterCard statement shows a balance of $510 at 13.6% compounded monthly. What monthly payment will pay off this debt in 1 year 6 months? (Round your answer to the nearest cent.)