Exam 11: Ordinary Simple Annuities

Charter has been contributing $900 at the end of each month for the past 15 months to a savings plan that earns 4% compounded monthly. What amount will he have one year from now, if he continues with the plan?

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.

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?

Siri plans to retire now and would like to receive $10 000.00 per month for twenty years starting at the end of the first month after her retirement. Calculate the amount he must invest now if interest is 4.9% compounded monthly.

Calculate the accumulated value of quarterly payments of $100.00 made at the end of each quarter for ten years just after the last payment has been made if interest is 8% p.a. compounded quarterly.

Planning for their child's college education, David and Carol Roberts opened an account paying 6.36% compounded monthly. If ordinary annuity payments of $700.00 per month are to be paid out of the account for three years starting seven years from now, how much did the Roberts' deposit?

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 monthly. How much is the interest cost of the financing?

Nuclear power plants are required to have full decommissioning costs accumulated during the useful life of the plant. The new nuclear plant at Darlington is designed for 60 years of operational life starting in 2025. OPG plans to set aside $1 million per month in a sinking fund for the operational of the plant. What is the value of the value of this sinking fund at the end of the plant life, if OPG expects an average rate of return of 2.5% compounded monthly?

Siri plans to retire when her simple annuity savings account has enough money to receive $10 000.00 per month for twenty years starting at the end of the first month after her retirement. She starts saving $4420 per month. Calculate when should Siri retire from today if her savings account pays 4.9% compounded monthly.

How many quarterly payments will it take for $400.00 deposited at the end of each quarter to amount to $11 453.40 at 6% compounded quarterly?

What is the future value of an annuity with monthly deposits of $277 for a period of 11.5 years at an interest rate of 7.44% compounded monthly? The deposits are made at the end of the month.

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?

An annuity due is an annuity for which

For the last four years Joe Thiesman has made deposits of $300.00 at the end of every six months earning interest at 5.7% compounded semi-annually. If he leaves the accumulated balance for another ten years at 3.2% compounded quarterly, what will the balance be in Joe's account?

Ali bought Kia Forte 5 from Durham Kia for $20 078.00 on finance agreement with BMO at 5.99% compounded monthly. Calculate the monthly payment on the loan, if the financing period is 60 months.

An annuity with periodic payments made at the end of each payment period is called:

Jason deposited $100.00 at the end of each month for five years into an account paying 6% compounded monthly. What will be the balance in the account at the end of the five-year term?

Calculate the accumulated value of monthly payments of $100.00 made at the end of each month for ten years just after the last payment has been made if interest is 12% p.a. compounded monthly.

Nuclear power plants are required to have full decommissioning costs accumulated during the useful life of the plant. The new nuclear plant at Darlington is designed for 60 years of operational life starting in 2025. OPG plans to set aside $1 million per month during the operation of the plant. What is the value of this annuity in 2025, if OPG uses Ontario's recommended discount rate of 2.5% compounded monthly?

Bonny converted an RRSP balance of $176 875.67 into an RRIF that will pay her $2720.00 at the end of every month for 8 years. What is the nominal rate of interest?