Reference no: EM133272957
1.Crystal receives $1,600 from an investment at the beginning of every month for 3 years and 3 months at 5.00% compounded quarterly.
a. What type of annuity is this?
Ordinary simple annuity
Ordinary general annuity
Simple annuity due
General annuity due
b. How many payments are there in this annuity?
2. How much should Timothy have in a savings account that is earning 2.50% compounded quarterly, if she plans to withdraw $1,500 from this account at the end of every quarter for 7 years?
3. Benjamin saved $200 at the end of every month for 3 years in her bank account that earned 5.40% compounded monthly.
a. What is the accumulated value of her savings at the end of the period?
$7,562.99
$7,797.02
$ 96,451.88
$ 597.02
b. What is the interest earned over the period?
$397.02
$7,797.02
$797.02
$597.02
4. Calculate the amount of money Crystal had to deposit in an investment fund growing at an interest rate of 3.50% compounded annually, to provide her daughter with $12,000 at the end of every year, for 5 years, throughout undergraduate studies.
5. Abigail purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first nine years and $300 at the end of every month for the next five years. The annuity earns interest at a rate of 4.7% compounded quarterly.
a. What was the purchase price of the annuity?
b. How much interest did Abigail receive from the annuity?
6. Bradley deposited $1,100 at the end of every month into an RRSP for 8 years. The interest rate earned was 5.50% compounded semi-annually for the first 2 years and changed to 5.75% compounded monthly for the next 6 years. What was the accumulated value of the RRSP at the end of 8 years?