10 POINTS! annuities problem (2 qustions) - on future value/present value CLICK & LOOK BELOW. thank you!?

1. Wilma deposits 1700 dollars in an account that earns a nominal interest rate of 4.4 percent convertible quarterly. After 4 years, she withdraws 730 dollars. How much is in the account 7 years after the initial deposit?





_______ = dollars.








2. Julia Roberts deposits 4100 dollars in an account paying an effective rate of interest of 6.8 percent. Three years later, she withdraws 1900 dollars. If there are no other transactions, how long will it take (from the time of the first deposit) for her account balance to reach 9400 dollars? (Assume simple interest between compoundings.)


_______ years and _________ days.





3. An investment will pay 6600 dollars at the beginning of 2001, and 3400 dollars at the beginning of 2005. What is the present value of the investment at the beginning of 1998, assuming an effective interest rate of 4.2 percent?








_______ = dollars.|||1) First find what it is worth in 4 years (16 quarters at 4.4%/4quarters),





1700(1+.044/4)^(4*4)





then subtract the 730 and calculate 12 more quarters (3yrs)





[1700(1+.044/4)^16 - 730]*(1+.044/4)^12





use a calculator to solve.





2) solve 4100*(1.068)^3 - 1900 (sorry, but I don't have a calculator handy)





That is the amount AFTER 3 yrs. Use that figure as PV in the following equation:





FV = PV(1+i)^t





FV = future value = 9400





i = .068





9400 = PV(1.068)^t





you have PV from above, so solve for t (in years, keep the whole number in years, multiply the decimal by 365 to get the number of days)





3) 3400 = PV[(1.042)^3-6600]*(1.042)^4





the final payment (FV) is equal to the PV times 3 years interest (compounded annually) minus the first payment of 6600 times another 4 yrs interest (again compounded annually)





Solve for PV