Josh and Ann are saving up for their daughter’s college education. Seventeen years from today, they will have to pay $21,000 for her first year of school. Each year after that, the cost will rise by 4% per year. If their daughter takes 5 years to graduate, how much must they set aside every year from now UNTIL SHE GRADUATES to pay for her education? Assume they can earn 6% per year on their savings. You must draw a correct cash flow diagram.

Jasmine invested the profit of his business in an investment fund that was earning 3.50% compounded monthly. He began withdrawing $3,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 6 years, how much money did he initially invest in the fund?

2. Sherry expects to deposit $1000 now, $3000 4 years from now, and $1500 6 years from now and earn at a rate of 12% per year compounded semiannually through a company-sponsored savings plan. What amount can she withdraw 10 years from now? a. Draw cash flow diagram. 4 b. What amount can she withdraw 10 years from now?

Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? I 2.