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Question 4-3 An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus $100 a year for 10 years is an annuity, But $100 in year 1, $200 in year 2, and $400 in years 3 through 10 does not constitute and annuity. However, the entire series does contain an annuity. Is this statement true or false? Problem 4-1 If you deposit $10,000 in a bank account that pay %10 interest annually, how much will be in your account after 5 years? 4-2 What is the present value of a security that will pay $5,000 in 20 years if securities of risk pay 7% annually? 4-12 Find the value of the following annuities. The first payment in these annuities is made at the end of year 1, so they are ordinary annuities. a. $400 per year for 10 years at 10%. b. $200 per year for 5 years at 5%. c. $400 per year for 5 years at 0%. d. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. 4-29 Assume that your auntie sold her home on December 31, and to bring the deal to a close she took a second home loan in the measure of $10,000 as a major aspect of the installment. The home loan has a cited (or ostensible) financing cost of 10%; it calls for installments at regular intervals, starting on June 30, and is to be amortized more than 10 years. Presently, after 1 year, your close relative must educate the IRS and the individual who purchased the house about the interest that was incorporated into the two installments made amid the year. (This premium will be wage to your auntie and a derivation to the purchaser of the house.) To the nearest dollar, what is the aggregate sum of premium that was paid amid the primary year?