Deposits of $R are made every 3 months starting June 15,2010 in a fund paying interest at j4 = 8%.Immediately after the deposit on December 15,2018,there is $40,000 in the fund.What is R?

A) $800.09 B) $832.75 C) $867.46 D) $943.85 A) $800.09 B) $832.75 C) $867.46 D) $943.85

A loan is to be repaid with semi-annual payments of $2000 over 8 years,first payment due in 6 months.The interest rate on the loan is j2 = 10% for the first 3 years and j2 = 6% thereafter.What is the amount of the loan? (answer to nearest dollar)

A) $21,676 B) $22,882 C) $24,439 D) $27,212 A) $21,676 B) $22,882 C) $24,439 D) $27,212

A man has won a lottery worth $500,000.He invests this money in a fund paying j2 = 7%.He plans to withdraw $R every 6 months for 25 years,with the first withdrawal made today.What is R?

A) $21,445.20 B) $21,316.85 C) $20,596.00 D) $20,452.63 A) $21,445.20 B) $21,316.85 C) $20,596.00 D) $20,452.63

You can buy a car with 60-monthly payments of $350,first payment made today.If j12 = 3%,what is the equivalent cash price of the car,payable today?

A) $19,478.33 B) $19,527.02 C) $19,828.33 D) $20,947.63 A) $19,478.33 B) $19,527.02 C) $19,828.33 D) $20,947.63

Exam 3: Simple Annuities

You buy furniture today for $A and "don't pay a cent for 6 months".At the end of 6 months,you begin making monthly payments of $125 for 36 months.If this payment plan charges interest at j₁₂ = 7.2%,what is A?

(Multiple Choice)

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(88)

Question 21

Deposits of $725 are made into an account earning j₄ = 10% in order to accumulate to $21,500.It turns out that 22 deposits are needed,plus a bit more.If the final deposit is a drop payment made 3 months after the last regular deposit,what is the size of this final deposit?

(Multiple Choice)

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(82)

Question 22

Jim just turned age 65.He takes his RRSP savings of $300,000 and buys a 20-year annuity that pays him $R every month.If the interest rate is j₁₂ = 7.2% and the first payment is at age 65,what is R?

(Multiple Choice)

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(82)

Question 23

Deposits of $200 are made at the end of every 3-months.The interest rate is j4 = 6% for the first 4-years (16 deposits)and j4 = 5% thereafter.What is the accumulated value of the deposits,immediately after the 24th deposit?

(Multiple Choice)

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(99)

Question 24

To buy a used car,you have two options.You can pay $10,400 in cash today (December 12,2014)or you can pay $R every month,from December 12,2014 and to July 12,2017.If the interest rate is j₁₂ = 6%,what is R?

(Multiple Choice)

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(82)

Question 25

Mr.A deposits $5000 today in a fund earning interest at j₂ = 6%.He wishes to withdraw $490 every 6 months for as long as possible.He will make his first withdrawal exactly 2 years from today.When will he make the final smaller concluding (drop)withdrawal?

(Multiple Choice)

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(83)

Question 26

Deposits of $R are made every 3 months starting June 15,2010 in a fund paying interest at j₄ = 8%.Immediately after the deposit on December 15,2018,there is $40,000 in the fund.What is R?

(Multiple Choice)

4.7/5

(64)

Question 27

A loan is to be repaid with semi-annual payments of $2000 over 8 years,first payment due in 6 months.The interest rate on the loan is j₂ = 10% for the first 3 years and j₂ = 6% thereafter.What is the amount of the loan? (answer to nearest dollar)

(Multiple Choice)

4.7/5

(78)

Question 28

Jim buys some furniture for $3850.He pays $200 down and repays the rest with 24 monthly payments of $R,first payment due 3 months from today.If j₁₂ = 9%,what is R?

(Multiple Choice)

4.7/5

(80)

Question 29

An individual borrows $10,000 at j₄ = 8%.He/she is to pay off this loan with quarterly payments of $R over 10-years (first payment 3-month after loan is taken out).What is R?

(Multiple Choice)

4.9/5

(78)

Question 30

You buy some furniture for $1200.You have 2 options: pay the $1200 today or make 12 monthly payments (made at the end of every month).For the 2^nd option,the furniture store will charge you an administration fee of $72.Thus,your monthly payment will be 1272 ¸ 12 = $106.Which of the following statements is closest to the truth if you were to choose option 2? (All interest rates are j₁₂)

(Multiple Choice)

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(80)

Question 31

Gerry wins a lottery worth $100,000.Instead of the lump sum,Gerry will be paid in monthly installments for a total of 60 payments,with the first monthly payment to be made today.If the money earns interest at j₁₂ = 6%,what is the monthly payment?

(Multiple Choice)

4.8/5

(80)

Question 32

A man has won a lottery worth $500,000.He invests this money in a fund paying j₂ = 7%.He plans to withdraw $R every 6 months for 25 years,with the first withdrawal made today.What is R?

(Multiple Choice)

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(86)

Question 33

The present value at j₁₂ of a $10,000 payment today,followed by 32 monthly payments of $5000 is $136,335.69.What is the present value of 33 monthly payments of $2000,first payment made today,if these payments earn the same interest rate,j₁₂?

(Multiple Choice)

4.8/5

(84)

Question 34

Deposits of $1500 are made every 3 months starting today,October 5,2010.The final deposit is made on January 5,2015.If the fund earns j₄ = 8%,how much is in the fund immediately after the deposit on January 5,2015?

(Multiple Choice)

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(66)

Question 35

Tae takes out a loan for $5000,to be paid back with monthly payments of $199 for as long as is needed.The first payment of $199 is due exactly 6-months after the loan is taken out.Tae also plans to increase the size of the final payment (that is,he plans to make a balloon payment,not a drop payment).If the interest rate on the loan is j₁₂ = 12%,how many payments are needed?

(Multiple Choice)

4.8/5

(80)

Question 36

Billy deposits $800 at the end of every 3-months in a fund earning interest at j4 = 12%.At the end of 3 years,the interest rate changes to j4 = 8%.What is the accumulated value immediately after his 20th deposit?

(Multiple Choice)

4.9/5

(74)

Question 37

An education fund of $40,000 is to be accumulated by making payments of $400 at the end of every 3-month period,plus a smaller concluding payment.Determine the number of full payments required if j₄ = 9%.

(Multiple Choice)

4.9/5

(79)

Question 38

You can buy a car with 60-monthly payments of $350,first payment made today.If j₁₂ = 3%,what is the equivalent cash price of the car,payable today?

(Multiple Choice)

4.9/5

(79)

Question 39

A loan of $A is to be repaid over 5 years with quarterly payments of $600 (1^st payment 3 months from now).The interest rate on the loan is j₄ = 8% for the first 3 years and j₄ = 6% thereafter.What is the value of A?

(Multiple Choice)

4.8/5

(89)

Question 40

Showing 21 - 40 of 67

You buy furniture today for $A and "don't pay a cent for 6 months".At the end of 6 months,you begin making monthly payments of $125 for 36 months.If this payment plan charges interest at j₁₂ = 7.2%,what is A?

Deposits of $725 are made into an account earning j₄ = 10% in order to accumulate to $21,500.It turns out that 22 deposits are needed,plus a bit more.If the final deposit is a drop payment made 3 months after the last regular deposit,what is the size of this final deposit?

Jim just turned age 65.He takes his RRSP savings of $300,000 and buys a 20-year annuity that pays him $R every month.If the interest rate is j₁₂ = 7.2% and the first payment is at age 65,what is R?

Deposits of $200 are made at the end of every 3-months.The interest rate is j4 = 6% for the first 4-years (16 deposits)and j4 = 5% thereafter.What is the accumulated value of the deposits,immediately after the 24th deposit?

To buy a used car,you have two options.You can pay $10,400 in cash today (December 12,2014)or you can pay $R every month,from December 12,2014 and to July 12,2017.If the interest rate is j₁₂ = 6%,what is R?

Mr.A deposits $5000 today in a fund earning interest at j₂ = 6%.He wishes to withdraw $490 every 6 months for as long as possible.He will make his first withdrawal exactly 2 years from today.When will he make the final smaller concluding (drop)withdrawal?

Deposits of $R are made every 3 months starting June 15,2010 in a fund paying interest at j₄ = 8%.Immediately after the deposit on December 15,2018,there is $40,000 in the fund.What is R?

A loan is to be repaid with semi-annual payments of $2000 over 8 years,first payment due in 6 months.The interest rate on the loan is j₂ = 10% for the first 3 years and j₂ = 6% thereafter.What is the amount of the loan? (answer to nearest dollar)

Jim buys some furniture for $3850.He pays $200 down and repays the rest with 24 monthly payments of $R,first payment due 3 months from today.If j₁₂ = 9%,what is R?

An individual borrows $10,000 at j₄ = 8%.He/she is to pay off this loan with quarterly payments of $R over 10-years (first payment 3-month after loan is taken out).What is R?

Gerry wins a lottery worth $100,000.Instead of the lump sum,Gerry will be paid in monthly installments for a total of 60 payments,with the first monthly payment to be made today.If the money earns interest at j₁₂ = 6%,what is the monthly payment?

A man has won a lottery worth $500,000.He invests this money in a fund paying j₂ = 7%.He plans to withdraw $R every 6 months for 25 years,with the first withdrawal made today.What is R?

The present value at j₁₂ of a $10,000 payment today,followed by 32 monthly payments of $5000 is $136,335.69.What is the present value of 33 monthly payments of $2000,first payment made today,if these payments earn the same interest rate,j₁₂?

Deposits of $1500 are made every 3 months starting today,October 5,2010.The final deposit is made on January 5,2015.If the fund earns j₄ = 8%,how much is in the fund immediately after the deposit on January 5,2015?

Billy deposits $800 at the end of every 3-months in a fund earning interest at j4 = 12%.At the end of 3 years,the interest rate changes to j4 = 8%.What is the accumulated value immediately after his 20th deposit?

An education fund of $40,000 is to be accumulated by making payments of $400 at the end of every 3-month period,plus a smaller concluding payment.Determine the number of full payments required if j₄ = 9%.

You can buy a car with 60-monthly payments of $350,first payment made today.If j₁₂ = 3%,what is the equivalent cash price of the car,payable today?

A loan of $A is to be repaid over 5 years with quarterly payments of $600 (1^st payment 3 months from now).The interest rate on the loan is j₄ = 8% for the first 3 years and j₄ = 6% thereafter.What is the value of A?

Simple Interest and Simple Discount

Compound Interest

General and Other Annuities

Repayment of Debts

Bonds

Business Decisions, Capital Budgeting and Depreciation

Contingent Payments

Filters

Exam 3: Simple Annuities

You buy furniture today for $A and "don't pay a cent for 6 months".At the end of 6 months,you begin making monthly payments of $125 for 36 months.If this payment plan charges interest at j12 = 7.2%,what is A?

Deposits of $725 are made into an account earning j4 = 10% in order to accumulate to $21,500.It turns out that 22 deposits are needed,plus a bit more.If the final deposit is a drop payment made 3 months after the last regular deposit,what is the size of this final deposit?

Jim just turned age 65.He takes his RRSP savings of $300,000 and buys a 20-year annuity that pays him $R every month.If the interest rate is j12 = 7.2% and the first payment is at age 65,what is R?

Deposits of $200 are made at the end of every 3-months.The interest rate is j4 = 6% for the first 4-years (16 deposits)and j4 = 5% thereafter.What is the accumulated value of the deposits,immediately after the 24th deposit?

To buy a used car,you have two options.You can pay $10,400 in cash today (December 12,2014)or you can pay $R every month,from December 12,2014 and to July 12,2017.If the interest rate is j12 = 6%,what is R?

Mr.A deposits $5000 today in a fund earning interest at j2 = 6%.He wishes to withdraw $490 every 6 months for as long as possible.He will make his first withdrawal exactly 2 years from today.When will he make the final smaller concluding (drop)withdrawal?

Deposits of $R are made every 3 months starting June 15,2010 in a fund paying interest at j4 = 8%.Immediately after the deposit on December 15,2018,there is $40,000 in the fund.What is R?

A loan is to be repaid with semi-annual payments of $2000 over 8 years,first payment due in 6 months.The interest rate on the loan is j2 = 10% for the first 3 years and j2 = 6% thereafter.What is the amount of the loan? (answer to nearest dollar)

Jim buys some furniture for $3850.He pays $200 down and repays the rest with 24 monthly payments of $R,first payment due 3 months from today.If j12 = 9%,what is R?

An individual borrows $10,000 at j4 = 8%.He/she is to pay off this loan with quarterly payments of $R over 10-years (first payment 3-month after loan is taken out).What is R?

Gerry wins a lottery worth $100,000.Instead of the lump sum,Gerry will be paid in monthly installments for a total of 60 payments,with the first monthly payment to be made today.If the money earns interest at j12 = 6%,what is the monthly payment?

A man has won a lottery worth $500,000.He invests this money in a fund paying j2 = 7%.He plans to withdraw $R every 6 months for 25 years,with the first withdrawal made today.What is R?

The present value at j12 of a $10,000 payment today,followed by 32 monthly payments of $5000 is $136,335.69.What is the present value of 33 monthly payments of $2000,first payment made today,if these payments earn the same interest rate,j12?

Deposits of $1500 are made every 3 months starting today,October 5,2010.The final deposit is made on January 5,2015.If the fund earns j4 = 8%,how much is in the fund immediately after the deposit on January 5,2015?

Billy deposits $800 at the end of every 3-months in a fund earning interest at j4 = 12%.At the end of 3 years,the interest rate changes to j4 = 8%.What is the accumulated value immediately after his 20th deposit?

An education fund of $40,000 is to be accumulated by making payments of $400 at the end of every 3-month period,plus a smaller concluding payment.Determine the number of full payments required if j4 = 9%.

You can buy a car with 60-monthly payments of $350,first payment made today.If j12 = 3%,what is the equivalent cash price of the car,payable today?

A loan of $A is to be repaid over 5 years with quarterly payments of $600 (1st payment 3 months from now).The interest rate on the loan is j4 = 8% for the first 3 years and j4 = 6% thereafter.What is the value of A?

Simple Interest and Simple Discount

Compound Interest

General and Other Annuities

Repayment of Debts

Bonds

Business Decisions, Capital Budgeting and Depreciation

Contingent Payments

Filters

You buy furniture today for $A and "don't pay a cent for 6 months".At the end of 6 months,you begin making monthly payments of $125 for 36 months.If this payment plan charges interest at j₁₂ = 7.2%,what is A?

Deposits of $725 are made into an account earning j₄ = 10% in order to accumulate to $21,500.It turns out that 22 deposits are needed,plus a bit more.If the final deposit is a drop payment made 3 months after the last regular deposit,what is the size of this final deposit?

Jim just turned age 65.He takes his RRSP savings of $300,000 and buys a 20-year annuity that pays him $R every month.If the interest rate is j₁₂ = 7.2% and the first payment is at age 65,what is R?

To buy a used car,you have two options.You can pay $10,400 in cash today (December 12,2014)or you can pay $R every month,from December 12,2014 and to July 12,2017.If the interest rate is j₁₂ = 6%,what is R?

Mr.A deposits $5000 today in a fund earning interest at j₂ = 6%.He wishes to withdraw $490 every 6 months for as long as possible.He will make his first withdrawal exactly 2 years from today.When will he make the final smaller concluding (drop)withdrawal?

Deposits of $R are made every 3 months starting June 15,2010 in a fund paying interest at j₄ = 8%.Immediately after the deposit on December 15,2018,there is $40,000 in the fund.What is R?

A loan is to be repaid with semi-annual payments of $2000 over 8 years,first payment due in 6 months.The interest rate on the loan is j₂ = 10% for the first 3 years and j₂ = 6% thereafter.What is the amount of the loan? (answer to nearest dollar)

Jim buys some furniture for $3850.He pays $200 down and repays the rest with 24 monthly payments of $R,first payment due 3 months from today.If j₁₂ = 9%,what is R?

An individual borrows $10,000 at j₄ = 8%.He/she is to pay off this loan with quarterly payments of $R over 10-years (first payment 3-month after loan is taken out).What is R?

Gerry wins a lottery worth $100,000.Instead of the lump sum,Gerry will be paid in monthly installments for a total of 60 payments,with the first monthly payment to be made today.If the money earns interest at j₁₂ = 6%,what is the monthly payment?

A man has won a lottery worth $500,000.He invests this money in a fund paying j₂ = 7%.He plans to withdraw $R every 6 months for 25 years,with the first withdrawal made today.What is R?

The present value at j₁₂ of a $10,000 payment today,followed by 32 monthly payments of $5000 is $136,335.69.What is the present value of 33 monthly payments of $2000,first payment made today,if these payments earn the same interest rate,j₁₂?

Deposits of $1500 are made every 3 months starting today,October 5,2010.The final deposit is made on January 5,2015.If the fund earns j₄ = 8%,how much is in the fund immediately after the deposit on January 5,2015?

An education fund of $40,000 is to be accumulated by making payments of $400 at the end of every 3-month period,plus a smaller concluding payment.Determine the number of full payments required if j₄ = 9%.

You can buy a car with 60-monthly payments of $350,first payment made today.If j₁₂ = 3%,what is the equivalent cash price of the car,payable today?

A loan of $A is to be repaid over 5 years with quarterly payments of $600 (1^st payment 3 months from now).The interest rate on the loan is j₄ = 8% for the first 3 years and j₄ = 6% thereafter.What is the value of A?