Exam 11: Ordinary Simple Annuities

How much interest is included in the accumulated value of $250 paid at the end of every month for 5 years if the interest rate is 4.0% compounded monthly?

What is the nominal rate of interest on a loan of $6800.00 repaid in semi-annual installments of $1175.00 in six years?

How long will it take for quarterly deposits of $425 to accumulate to be $16440 at an interest rate of 8.48% compounded quarterly? (Final answer in years and months e.g., 7 years and 4.24 months)

What payment is required at the end of each month for 5 years to repay a loan of $20 000.00 at 6.0% compounded monthly?

How many semi-annually payments will it take for $500.00 deposited at the end of each half year to amount to $10 000.00 at 6% compounded semi-annually?

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 monthly. 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?

A loan of $20 000 is paid over 5 years by monthly payments of $388. What is the nominal rate of interest on the loan?

Sofia plans to save for next two years. She plans to put away $1000 every 6 months starting 6 months from now. What will be the value of her savings after two years if her savings accounts earns at a rate of 8% compounded semi-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 monthly. What will be the size of his payments per month from the ordinary simple annuity for 20 years following his retirement?

What is the size of end-of-month monthly deposits which will accumulate to $122 200.00 after six years if interest is 5.7% compounded monthly?

What nominal rate of interest is earned by monthly deposits of $560.00 made for 6 years if the balance just after the last deposit is $52 700.00?

The Olfert Contractors, Inc., are saving $958.00 every month in order to purchase a new paving machine in twelve years. Their savings certificates pay 6% p.a. compounded monthly. How much of the maturity value will be interest?

If a loan was repaid by ordinary yearly payments of $2000.00 in five years at 9.00%, compounded yearly, how much interest was paid?

A trust fund is set up to make payments of $1320.00 at the end of each month for seven years. Interest on the fund is 7.28% compounded monthly. a) How much money must be deposited into the fund? b) How much will be paid out of the fund? c) How much interest is earned by the fund?

Salem plans to deposit $2200 every 6 months for 15 years to save for his son's higher education. The rate of return will be 4% compounded semi-annually for the first 5 years and 8% compounded semi-annually for the subsequent 10 years. Calculate the future value of this simple annuity.

Randy bought an annuity to pay him $2700.00 at the end of every six months for twenty years. How much of the total annuity payments is interest, if interest is 6.5% p.a. compounded semi-annually?

How much interest is included in the accumulated value of $4750 paid at the end of every six months for 4.5 years if the interest rate is 8.5% compounded semi-annually?

Sam got a job at the Brick. He plans to save $500 every month for 3 years to buy a car. The savings account earns 2.25% compounded monthly. If he puts the money in his savings account at the end of each month, how much interest is included in the future value of the annuity?

Suppose $726.56 is deposited at the end of every six months into an account earning 6.45% compounded semi-annually. If the balance in the account four years after the last deposit is to be $31 300.00, how many deposits are needed?

Annette bought a vacation property for $22 900.00 down and quarterly mortgage payments of $1224.51 at the end of each quarter for six years. Interest is 8.4% compounded quarterly. a) What was the purchase price of the property? b) How much interest will Annette pay?