Exam 12: Ordinary General Annuities

What is the accumulated value of deposits of $1120.00 made at the end of every six months for three years if interest is 8.48% compounded quarterly?

Note: The calculations for this question were done using Excel's RATE function. Compute the nominal annual rate of interest on a loan of $67 000.00 repaid in semi-annual installments of $6540.00 in 11.5 years.

You are to receive $16700 from your trust fund in 7.5 years. You negotiate a deal where you can withdraw $350 per month starting 2.75 years before you can withdraw the remainder of the funds. You are able earn 4.18% compounded annually on your money. How much is your trust fund reduced to?

Edward Martin borrowed $15 810.00 from his uncle to finance his graduate studies. The loan agreement calls for equal payments at the end of each month for 6 years. The payments are deferred for 3 years and interest is 8.12% compounded semi-annually. What is the size of the monthly payments?

Note: The calculations for this question were done using Excel's RATE function. A property worth $15 000.00 is purchased for 10% down and semi-annual payments of $1750.00 for twelve years. What is the effective rate of interest if interest is compounded semi-annually?

You won $150 000.00 in a lottery and you want to set some of that sum of money aside for 6 years. After 6 years you would like to receive $2710.00 at the end of every 6 months for 8 years. If interest is 6% compounded quarterly, how much of your winnings must you set aside?

You make 4 semi-annual deposits starting at $350 and increasing at a constant rate of 2.14%. The interest rate is 5.12% compounded annually. How much has been deposited in total?

What is the principal from which $279.00 can be withdrawn at the end of each month for 17.5 years if interest is 5.44% compounded quarterly?

A loan of $91 450.00 is to be repaid by equal semi-annual payments for 11 years. What is the size of each semi-annual payment if the interest is 9.24% compounded annually?

A $ 120 000.00 mortgage is amortized over 25 years. If interest on the mortgage is 8.5% compounded semi-annually, calculate the size of monthly payments made at the end of each month.

A $360 000.00 mortgage is amortized by making monthly payments of $2600. If interest is 7.5% compounded semi-annually, what is the term of the mortgage?

Mr. Lavergne accumulated $320 000.00 in an RRSP. He converted the RRSP into an RRIF and started to withdraw $7500.00 at the end of every three months from the fund. If interest is 4.68% compounded monthly, how many withdrawals can Mr. Lavergne make?

You won $250 000.00 in a lottery and you want to set some of that sum of money aside for 11.5 years. After 11.5 years, you would like to receive $4500.00 at the end of each month for 4.75 years. If the interest is 6.79% compounded annually, how much of your winnings must you set aside?

For how long must $179.23 be deposited at the end of each month to accumulate to $9700.00 at 6.18% compounded quarterly?

Calculate the amount of money that must be deposited at the end of every month into an account paying 12% compounded annually to accumulate to $100 000.00 in ten years.

You miss the 11th to 13th payments of a loan. The loan payments are $519.27 each month and the interest rate is 8.45% compounded annually. How much are you behind in your payments on the day that you miss the 13th payment?

How much must be deposited at the end of each month for 10 years to accumulate to $100 000.00 at 6.00% compounded yearly?

A real estate developer bought land for $170 000.00 down and monthly payments of $10450.00 for 5 years. What is the equivalent cash price if money is worth 7.75% compounded semi-annually?

Note: The calculations for this question were done using Excel's RATE function. A $160 000.00 mortgage with a 20-year term is repaid by making monthly payments of $1361.00. What is the rate of interest compounded semi-annually on the mortgage?

How much must be contributed into an RRSP at the end of each year for 37 years to accumulate to $213 000.00 if interest is 8.04% compounded quarterly?