Question 1

How many monthly payments will it take for $1000.00 deposited at the end of each month to amount to $50 000.00 at 9% compounded monthly?

Accepted Answer

FV = 50000.00; PMT = 1000.00;

Question 2

Don has just turned 43 and has accumulated $34 500 in his RRSP. He makes month-end contributions of $300 to the plan and intends to do so until he retires at the age of 60. The RRSP will be allowed to continue to accumulate until he reaches the age of 65. If the RRSP earn 8% compounded monthly for the next 22 years, what amount will his RRSP contain, when he reaches age 65?

Accepted Answer

A)  $129 539.17 
B)  $192 993.38 
C)  $227 493.81 
D)  $199 361.27 
E)  $392 354.65 
A)  $129 539.17 
B)  $192 993.38 
C)  $227 493.81 
D)  $199 361.27 
E)  $392 354.65

Question 3

Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. The annuity can be classified as

Accepted Answer

A)  ordinary general annuity 
B)  ordinary annuity due 
C)  ordinary simple annuity 
D)  perpetuity 
E)  this is not an annuity 
A)  ordinary general annuity 
B)  ordinary annuity due 
C)  ordinary simple annuity 
D)  perpetuity 
E)  this is not an annuity

Question 4

You are offered payments of $475 at the end of each semi-annual period for 6.5 years. You think that the cost of money is 6.14% compounded semi-annually. What is the present cash value?

Accepted Answer

A)  $5092.06 
B)  $5029.06 
C)  $5209.06 
D)  $5292.06 
E)  $5290.06 
A)  $5092.06 
B)  $5029.06 
C)  $5209.06 
D)  $5292.06 
E)  $5290.06

How many monthly payments will it take for $1000.00 deposited at the end of each month to amount to $50 000.00 at 9% compounded monthly?

Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. The annuity can be classified as

You are offered payments of $475 at the end of each semi-annual period for 6.5 years. You think that the cost of money is 6.14% compounded semi-annually. What is the present cash value?

Review of Arithmetic

Review of Basic Algebra

Ratio, Proportion, and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, Cash Discounts, Markup, and Markdown

Simple Interest

Simple Interest Applications

Compound Interest - Future Value and Present Value

Compound Interest - Further Topics

Ordinary General Annuities

Annuities Due, Deferred Annuities, and Perpetuities

Amortization of Loans, Residential Mortgages, and Sinking Funds

Bond Valuation

Investment Decision Applications

Filters

Exam 11: Ordinary Simple Annuities

How many monthly payments will it take for $1000.00 deposited at the end of each month to amount to $50 000.00 at 9% compounded monthly?

Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. The annuity can be classified as

You are offered payments of $475 at the end of each semi-annual period for 6.5 years. You think that the cost of money is 6.14% compounded semi-annually. What is the present cash value?

Review of Arithmetic

Review of Basic Algebra

Ratio, Proportion, and Percent

Linear Systems

Cost-Volume-Profit Analysis and Break-Even

Trade Discounts, Cash Discounts, Markup, and Markdown

Simple Interest

Simple Interest Applications

Compound Interest - Future Value and Present Value

Compound Interest - Further Topics

Ordinary General Annuities

Annuities Due, Deferred Annuities, and Perpetuities

Amortization of Loans, Residential Mortgages, and Sinking Funds

Bond Valuation

Investment Decision Applications

Filters