How much must be deposited now, at 6% interest compounded semiannully, to yield an annuity payment of $4000 at the end of each six month period, for a total of five years?
Meg's pension plan is an annuity with a guaranteed return of 3% per year (compounded quarterly). She would like to retire with a pension of $30,000 per quarter for 10 years. If she works 22 years before retiring, how much money must she and her employer deposit each quarter?
