Reference no: EM133082281
1) Sarah receives $5,000 at the end of every month for 2 years and 6 months for money that he loaned to a friend at 5.90% compounded monthly.
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? (Round up to the next payment)
2) How much should Devin have in a savings account that is earning 2.75% compounded quarterly, if he plans to withdraw $1,950 from this account at the end of every quarter for 5 years?
(Round to the nearest cent)
3) Jordan saved $280 at the end of every month for 4 years in his bank account that earned 3.30% compounded monthly.
a. What is the accumulated value of his savings at the end of the period?
$14,027.77
$14,346.35
$217,664.13
$906.35
b. What is the interest earned over the period?
$626.35
$14,346.35
$1,186.35
$906.35
4) Calculate the present value of a loan that could be cleared by payments of $3,200 at the end of every 6 months for 8 years if money earns 5.37% compounded semi-annually.? (Round to the nearest cent)
5) Joel purchases a retirement annuity that will pay him $3,000 at the end of every six months for the first nine years and $800 at the end of every month for the next seven years. The annuity earns interest at a rate of 5.2% compounded quarterly.
a. What was the purchase price of the annuity? (Round to the nearest cent)
b. How much interest did Joel receive from the annuity? (Round to the nearest cent)
6) Caleb deposited $500 at the end of every month into an RRSP for 8 years. The interest rate earned was 4.50% compounded semi-annually for the first 3 years and changed to 4.75% compounded monthly for the next 5 years. What was the accumulated value of the RRSP at the end of 8 years? (Round to the nearest cent)
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: 1) Sarah receives $5,000 at the end of every month for 2 years and 6 months for money that he loaned to a friend at 5.90% compounded monthly.
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