Exam 13: Annuities Due, deferred Annuities, and Perpetuities

Fraser deposits $790.00 at the beginning of every three months.He wants to build up his account so that he can withdraw $1550.00 every three months starting three months after the last deposit.If he wants to make the withdrawals for 16 years and interest is 6.64% compounded quarterly,for how long must Fraser make the quarterly deposits?

Determine the accumulated value after 15 years of deposits of $500.00 made at the beginning of every 6 months and earning interest at 12% compounded monthly?

Jack Chen makes deposits of $415.00 at the beginning of every three months.Interest earned by the deposits is 4.12% compounded quarterly. a)What will the balance in Jack's account be after eight years? b)How much of the balance will Jack have contributed? c)How much of the balance is interest?

Quarterly deposits of $650.00 were made at the beginning of every 3 months for 11.25 years.If the interest is 4.92% compounded monthly,what amount can be withdrawn 6 years after the last deposit?

Hector makes payments of $2000.00 into an RRSP at the beginning of every six months starting today for 33 years.If the interest rate is 8% compounded semi-annually,calculate the accumulated value.

How much does a depositor have to save at the beginning of every three months for 15 years to accumulate $200 000.00 if interest is 4% compounded quarterly?

What is the discounted value of deposits of $570.00 made at the beginning of every three months for 8.25 years if money is worth 8.4% compounded quarterly?

What is the accumulated value after 14 years of monthly deposits of $415.00 earning interest at 5.8% compounded semi-annually if the deposits are made a)at the end of each month? b)at the beginning of each month?

Jeff is retired and has an investment fund worth $210 000 in an RRSP,which earns 9% compounded semi-annually.He plans to withdraw only $2000 at the beginning of each month starting today.When will the fund become depleted?

What is the principal invested at 8% compounded semi-annually from which monthly withdrawals of $1000.00 can be made at the beginning of each month for 10 years but deferred for 3 years?

Equal sums of money are withdrawn monthly from a fund of $33 000.00 for 15.25 years.If interest is 9% compounded monthly,what is the size of each withdrawal if the withdrawal is made at the beginning of each month?

The monthly rent payment on computer equipment is $30.00 payable in advance.What yearly payment in advance would satisfy the lease if interest is 12% compounded monthly?

Jawad makes semi-annual contributions of $2000 starting on his 27^th birthday.How much will he accumulate in his RRSP by age 60,if RRSP earns 8% compounded semi-annually and no contribution is made on his sixtieth birthday?

Compute the nominal annual rate of interest compounded monthly at which $1500.00 deposited at the beginning of every three months for ten years will amount to $90 000.00.

Jessica bought a bedroom suite on credit,signing an installment contract with a finance company that requires monthly payments of $100.00 for 5 years.The first payment is made on the date of signing and interest is 24% compounded monthly. a)What was the cash price? b)How much will Tricia pay in total? c)How much of what she pays will be interest?

Determine the future value and the present value of monthly payments of $200.00 each for five years at 12% compounded monthly if a)the payments form an annuity due; b)the payments form an ordinary annuity.

Ellora wants to accumulate $150 000.00 in an RRSP by making annual contributions of $5000.00 at the beginning of each year.If interest is 5.5% compounded quarterly,calculate how long she has to make contributions.

A contract valued at $81 500.00 requires payment of $3350.00 at the beginning of every six months.If interest is 6.5% compounded semi-annually,what is the term of the contract?

How much does a depositor have to save at the beginning of every three months for 13.25 years to accumulate $41 600.00 if interest is 8% compounded quarterly?

National Research Council is considering the establishment in perpetuity of a Visiting Professor chair at UOIT.The ongoing cost will be $12 500 at the end of each month.If the money can earn 8% compounded monthly in perpetuity,what endowment is required to fund the position?