Exam 12: Ordinary General Annuities

Deon makes monthly contributions of $250.00 at the end of every month into an RRSP. Calculate, to the nearest month, how long it will take to grow to $100 000.00 if interest is 8% compounded annually.

Calculate the accumulated value after twenty years of payments of $12000.00 made at the end of each year if interest is 6% compounded semi-annually.

A mortgage requires payments of $1000.00 at the end of every month for twenty-five years. If interest is 6% compounded semi-annually, calculate the principal of the loan.

Calculate the accumulated value after ten years of payments of $1000.00 made at the end of each year if interest is 6% compounded monthly.

A loan of $40 000.00 is to be repaid by equal quarterly payments for 5 years. What is the size of each semi-annual payment if the interest is 5.00% compounded annually?

Calculate the nominal interest rate of interest compounded quarterly if a loan of 43 000.00 is repaid in seven years by payments of $4000.00 made at the end of every six months.

Kelsey bought a car priced at $19700.00 for 10% down and equal monthly payments for 4.5 years. If interest is 8.22% compounded semi-annually, what is the size of the monthly payment?

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years

A mortgage of $326 000 is to be repaid by making payments of $2 500 at the end of each month. If interest is 4.75% compounded semi-annually, what is the term of the mortgage?

Sean Paul borrowed $20 000.00 from his father to finance his new business. The loan agreement calls for equal payments at the end of each month for 10 years. The payments are deferred for 4 years and interest is 4.00% compounded semi-annually. What is the size of the monthly payments?

For their daughter's future education David and Bonie set a fund in which they invest at the end of every six months. The first investment is $100 and they plan to increase their investments at a constant rate of 0.5%. If the fund earns 2 .4% compounded semi-annually, how much money will be in the fund in 16 years when their daughter goes to college?

If a loan was repaid by semi-annual payments of $4720.00 in 6.5 years at 8.24% compounded quarterly, how much interest was paid?

What sum of money can be withdrawn from a fund of $46 950.00 invested at 6.5% compounded semi-annually at the end of every three months for twelve years?

What is the principal invested at 6.76% compounded semi-annually from which monthly withdrawals of $450.00 can be made at the end of each month for 22 .75 years?

Conchita Martinez saves $17.25 at the end of each month and deposits the money in an account, paying 4.96% compounded quarterly. a) How much will she accumulate in 22 years? b) How much of the accumulated amount is interest?

A loan is repaid by making payments of $6000.00 at the end of every six months for twelve years. If interest on the loan is 8% compounded quarterly, what was the principal of the loan?

If a loan was repaid by monthly payments of $9 230.00 in 7.5 years at 6.15% compounded annually, how much interest was paid?

What is the accumulated value after 11.25 years of monthly deposits of $415.00 earning interest at 5.56% compounded semi-annually if the deposits are made at the end of each month?

You can buy a piece of equipment for $8600. The equipment is expected to last for 9 years and you want to have it completely paid off 3.5 years before it becomes unusable. Current loan rates are 9.5% compounded annually. What is the size of your semi-annual payment?

For how long will Harold have to make payments of $550.00 at the end of every three months to repay a loan of $16900.00 if interest is 9% compounded monthly?