Exam 12: Ordinary General Annuities

How many deposits of $6100.00 made at the end of every 6 months are needed to accumulate to $172 000.00 at 5.24% compounded quarterly?

A dealer sold a car to Kristy for $2000 down and monthly payments of $259.50 for 3.5 years, including interest at 7.5% compounded annually. What was the selling price of the car?

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?

Jamal plans to retire in 17 years. He is saving $2000 every month in a retirement savings account paying him a long-term interest of 9% compounded semi-annually. What will be the size of his payments per month from the ordinary annuity for 20 years following his retirement?

Note: This problem is solved using CalcPro for iPad Lahore Gym allows members to pay the members to pay the annual membership fee by a single payment of $240 at the beginning of the year, or by payments of $22 at the beginning of each month. What effective rate of interest is paid by members, who choose to pay by month?

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?

What is the final amount of an investment where you are making quarterly deposits of $672.31 at the end of the payment period for 7 years and 9 months? The interest rate is 6.16% compounded semi-annually.

Note: The calculations for this question were done using Excel's RATE function. What nominal annual rate of interest compounded semi-annually is earned by quarterly deposits of $7327.00 made for six years if the balance just after the last deposit is $289 000.00?

Sabrina deposits $300.00 into a savings account at the end of each month for five years. If the accumulated value of the deposits is $20 000.00 and interest is compounded semi-annually, calculate the nominal rate of interest

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 13^th payment?

Woods has contributed $3600.00 per year for the last ten years into a RRSP account earning 9% compounded semi-annually. His wife Karen, on the other hand, contributed $300 at the end of every month for the same period into a RRSP account earning 9% compounded quarterly. Who has bigger saving at the end of 10 years and by how much?

A mortgage of $326 000 is to be repaid by making payments of $2500 at the end of each month. If interest is 4.75% compounded semi-annually, what is the term of the mortgage?

Silva saves $100 at the end of each month and deposits the money in an account, paying 7.49% compounded semi-annually. How much of the accumulated amount is interest after 40 years?

Knowing that the education costs for her kids would be huge, Roberta puts lump sum money from her inheritance in a savings account paying an interest of 4.69% compounded semi-annually. If ordinary annuity payments of $1500.00 per month are to be paid out of the account at the end of each month for four years, how much did Roberta deposit?

What is the accumulated value of deposits of $2000.00 made at the end of every year for three years if interest is 6.00% compounded quarterly?

A loan of $54 000.00 is repaid by making payments of $3000.00 at the end of every three months. If the interest is 9% compounded monthly, calculate how long the payments have to be made.

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?

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?

A mortgage of $198 000.00 is to be amortized by payments over 22.5 years. If the payments are made at the end of each month and interest is 8.75% compounded semi-annually, what is the size of the monthly payments?

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?