Exam 11: Ordinary Simple Annuities

The Chretiens bought a rental property valued at $125 000.00 by paying 25% down and mortgaging the balance over 21.5 years through equal payments at the end of each quarter at 8.6% compounded quarterly. What was the size of the quarterly payments?

Find the present value of ordinary semi-annual payments of $810.00 for five years at 5.45% p.a., compounded semi-annually.

What is the future value of an annuity with monthly deposits of $277 for a period of 11.5 years at an interest rate of 7.44% compounded monthly? The deposits are made at the end of the month.

What is the nominal rate of interest if a six-year loan of $71000.00 is repaid by monthly payments of $1701.58?

Annette bought a vacation property for $22900.00 down and quarterly mortgage payments of $1224.51 at the end of each quarter for six years. Interest is 8.4% compounded quarterly. a) What was the purchase price of the property? b) How much interest will Annette pay?

A car was purchased for $4500.00 down and payments of $375.00 at the end of each month for 5 years. Interest is 9.72% compounded monthly. a) What was the purchase price of the car? b) How much will be the amount of interest paid?

If a loan was repaid by ordinary monthly payments of $715.00 in seven years at 9.12%, compounded monthly, how much interest was paid?

An annuity with periodic payments made at the end of each payment period is called:

$1000.00 is deposited at the end of every month into an account earning 6.00% compounded monthly. If the balance in the account five years after the last deposit is to be $50 000.00, how many deposits are needed?

Calculate the accumulated value of quarterly payments of $100.00 made at the end of each quarter for ten years just after the last payment has been made if interest is 8% p.a. compounded quarterly.

The Savoias bought an investment property valued at $160000.00 by paying 25% down and mortgaging the balance over 25 years through equal monthly payments at 6% compounded monthly. What was the size of the monthly payments?

What payment is required at the end of each month for 5 years to repay a loan of $20000.00 at 6.0% compounded monthly?

How long will it take for quarterly deposits of $425 to accumulate to be $16440 at an interest rate of 8.48% compounded quarterly? (Final answer in years and months e.g., 7 years and 4.24 months)

You are offered payments of $475 at the end of each semi-annual period for 6.5 years. You think that the cost of money is 6.14% compounded semi-annually. What is the present cash value?

To what will deposits of $47.00 made at the end of each month amount to after seven years if interest is 10.8% compounded monthly?

Calculate the accumulated value of monthly payments of $100.00 made at the end of each month for ten years just after the last payment has been made if interest is 12% p.a. compounded monthly.

Find the amount to which semi-annual deposits of $200.00 will grow in four years at 6.6% p.a. compounded semi-annually.

If a loan was repaid by ordinary yearly payments of $2000.00 in five years at 9.00%, compounded yearly, how much interest was paid?

Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made at the end of each month for six years. Financing is at 15% compounded monthly. a) What is the value of the original lease contract? b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date? c) How much money would be required to pay off the lease after nine months? d) If the lease were paid off after nine months, what would the total interest be? e) How much of the total interest would be due to deferring the first eight payments?

For the last four years Joe Thiesman has made deposits of $300.00 at the end of every six months earning interest at 5.7% compounded semi-annually. If he leaves the accumulated balance for another ten years at 3.2% compounded quarterly, what will the balance be in Joe's account?