Exam 12: Ordinary General Annuities

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?

Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account, paying 3.00% compounded semi-annually. a) How much will she accumulate in 20 years? b) How much of the accumulated amount is interest?

A 21-year mortgage is amortized by making payments of $3052.61 at the end of every three months. If interest is 8.45% compounded annually, what was the original mortgage balance?

How much should you invest today into account paying 3.2% compounded quarterly if you want to be able to withdraw at the end of every 3 month the amounts of money growing at a constant rate of 3% for the period of 5 years , if the first withdrawal is to be $100 five years three months from now?

What is the discounted value of $3000.00 paid at the end of every six months for 5 years if interest is 8.00% compounded yearly?

What is the principal from which $279.00 can be withdrawn at the end of each month for 17.5 years if interest is 5.44% compounded quarterly?

Mrs. Engleder has made deposits of $750.00 at the end of every six months for twenty-three years. If interest is 3.72% compounded monthly, how much will Mrs. Engleder have accumulated six years after the last deposit?

For her daughter's university education, Carla Hackl has invested an inheritance in a fund paying 9.2% compounded quarterly. If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now, how much was the inheritance?

One month from now, Shiva will make his first monthly contribution of $250 to a Tax-Free Savings account (TFSA). Over the long run, he expects to earn 8% compounded annually. How long will it take for the contributions and accrued earnings to reach $100 000?

Kelsey bought a car priced at $19 700.00 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?

Sam got a job at the Brick. He immediately finances a car paying $500 every month for 3 years. The interest is 2.25% compounded semi-annually. How much is the interest cost of the financing?

What is the future value of payments of $230.00 made at the end of every three months in twenty-one years if interest is 7.65% compounded annually?

The loan will have a term of 54 months and monthly payments of $385.13. The interest rate on the loan is 8.84% compounded quarterly. What is the amount of money that was borrowed?

A series of payments of $900 are being made at the end of each year for the next 8 years. What is the future value 8 years from now, if money can earn 9% compounded semi-annually?

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.

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

What is the discounted value of $4760.00 paid at the end of each year for 7 years if interest is 6.52% compounded quarterly?

You make 6 quarterly deposits starting at $135 and increasing at a constant rate of 4.5%. The interest rate is 8.4% compounded quarterly. What is the size of the last deposit?

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 loan was repaid in 6.5 years by quarterly payments of $515.00 at 9.85% compounded semi-annually. What is the value of the loan?