Reference no: EM133062745

1. What is the future value of payments of $200 made at the end of every 3 months for 12 years if money is worth 5% compounded quarterly?

2. What payment made at the end of each year for 18 years will amount to $16,000 at 4.2% compounded monthly?

3. How much would you have to pay into an account at the beginning of every six months to accumulate $10,000 in 8 years if interest is 7% compounded quarterly?

4. You plan to make 25 annual deposits into your savings account. The first deposit is $500 and the deposits increase by 3% thereafter.

What is the size of the 25th deposit?

What will be the total amount (the sum) deposited?

5. A tract of land is leased in perpetuity at $1,250 due at the beginning of each month. If money is worth 7.5% compounded monthly, what is the present value of the lease?

6. Cameron Laberge borrowed $7,500 at 8% compounded monthly. He agreed to repay the loan in equal monthly payments at the end of each month over four years.

a) What is the size of the monthly payment?

b) Prepare a partial amortization schedule showing details of the first three payments. (Use the next page for your table).