10.2.2 For each of the following decreasing annuities, specify i,n,R, and P.

(a) A retiree deposits $72,582 into a bank paying 6% interest compounded
monthly and withdraws $520 at the end of each month for 20 years.

(b) In order to receive $70 at the end of each quarter year from 2000 to
2005, Ms. Jones deposited $11,446 into a saving account paying 8% interest
compounded quarterly.

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10.2.10 Valerie needs $5000 3 years from now in order to pay off a loan. How
much must she save each quarter for the next 3 years if interest rates are
8% compounded quarterly? How much of the $5000 will be interest?


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10.2.18 Is it more profitable to receive a lump sum of $10,000 at the end
of 3 years or to receive $750 at the end of each quarter year for 3 years?
Assume that money can earn 8% interest compounded quarterly.


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A perpetuity is similar to a decreasing annuity, except that the payments
continue forever. 


10.2.26 Show that to establish a perpetuity paying R dollars at the end of
each interest period, it requires a deposit of R/i dollars, where i is
the interest rate per interest period.

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A deferred annuity is a type of decreasing annuity whose term is to start at
some future date.

10.2.28 On his tenth birthday, a boy receives an inheritance which is to
be used to pay for his college education. The money is deposited into
a trust fund which will pay him $10,000 on his 18th, 19th, 20th, and
21st birthdays. Find the size of the inheritance if the interest rate is
6% compounded annually.