Exam 11: Ordinary Simple Annuities

Calculate the present value of 120 payments of $50.00 made at the end of each of 120 consecutive months respectively if money is worth 12% compounded monthly.

Calculate the present value of five payments of $1500.00 made at the end of each of five consecutive years respectively if money is worth 6% compounded annually.

How many yearly payments will it take for $25000.00 deposited at the end of each year to amount to $1000 000.00 at 9% compounded yearly?

A father wants to provide an annuity of $3350.00 payable at the end of each 6 months during the three years his son attends college. It will be six years before his son goes to college. What single deposit must he make today that will finance the annuity, if he can invest his money at 7.84% p.a. compounded semi-annually?

The Olfert Contractors, Inc., are saving $958.00 every month in order to purchase a new paving machine in twelve years. Their savings certificates pay 6% p.a. compounded monthly. How much of the maturity value will be interest?

Find the amount to which monthly deposits of $100.00 will grow in five years at 4.8% p.a. compounded monthly.

What nominal rate of interest is earned by monthly deposits of $560.00 made for 6 years if the balance just after the last deposit is $52 700.00?

What deposit made at the end of each quarter will accumulate to $20 000.00 in four years at 4% compounded quarterly?

You want to be able to travel and withdraw $3750 at the end of every month during your yearlong trip. During your trip your travel fund will earn 6.24% compounded monthly. What is the size of your travel fund if you want to be able to start your trip in 4 years and 7 months?

Randy bought an annuity to pay him $2700.00 at the end of every six months for twenty years. How much of the total annuity payments is interest, if interest is 6.5% p.a. compounded semi-annually?

You currently have $4541 saved towards the purchase of a home theatre system. You want to be able to buy a system for $6225 plus GST in 4 years. Your money is earning 4.84% compounded monthly. What is the size of your monthly deposit?

Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. The annuity can be classified as

Find the present value for payments of $500.00 made at the end of each quarter for ten years, if interest is 8% compounded quarterly.

Kam expects to retire in 22 years. Beginning one month after his retirement he would like to receive $590.00 per month for 25 years. How much must he deposit into a fund today to be able to do so if the rate of interest on the deposit is 6.12% compounded monthly?

When the conversion period is different from the payment period, an annuity is called:

In what period of time could you pay back a loan of $13900.00 by making monthly payments of $296.00 if interest is 6.5% compounded monthly?

A loan of $19 850.00 is to be repaid in quarterly payments of $620.00. How many payments are required to repay the loan at 6.5% compounded quarterly?

How many semi-annually payments will it take for $500.00 deposited at the end of each half year to amount to $10000.00 at 6% compounded semi-annually?

What is the discounted value of deposits of $150.00 made at the end of each month for fourteen years if interest is 4.5% compounded monthly?

You currently have $4000 saved towards the purchase of a new car. You want to be able to buy a car for $15000 in 4 years. Your money is earning 5% compounded yearly. What is the size of your yearly deposit?