Exam 12: Ordinary General Annuities

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?

Don turned 60 years old today and has retired from Hydro One.Current economic value of his pension is his significant asset.He will be receiving pension payments of $84 000 every year.Based on a 22-year life expectancy and money worth 8% compounded annually and money depreciating at 2% annually,calculate the current economic value of Don's pension.

Sean Paul borrowed $20 000.00 from his father to finance his new business.The loan agreement calls for equal payments at the end of each month for 10 years.The payments are deferred for 4 years and interest is 4.00% compounded semi-annually.What is the size of the monthly payments?

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?

Deon makes monthly contributions of $250.00 at the end of every month into an RRSP.Calculate,to the nearest month,how long it will take to grow to $100 000.00 if interest is 8% compounded annually.

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?

Momin plans to buy a house on cash instead of paying mortgage.He targets spending $400 000 on his dream house.He plans to set aside $1200 every month to reach his target.He puts his savings in a Tax Free Savings Account (TFSA)and invests them in a high risk mutual fund,which has traditionally earned 12.2% annually.How long will it take Momin to reach his target?

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.

Mr.Sepaba accumulated $600 000.00 in an RRSP.He converted the RRSP into an RRIF and started to withdraw $3000.00 at the end of every month from the fund.If interest is 4.5% compounded yearly,for how long can Mr.Sepaba make withdrawals?

For how long must $179.23 be deposited at the end of each month to accumulate to $9700.00 at 6.18% compounded quarterly?

If a student loan was repaid by monthly payments of $800.00 in 5.0 years at 8.00% compounded yearly,how much interest was paid?

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?

Silva is contemplating to buy a 20 year annuity paying $2500 at the end of each month.What amount will be required to purchase the annuity,if the annuity provides a return of 6.75% compounded annually?

In order to purchase a truck Shandex Transport (ST)obtained a $50 000 loan for 5 years at 7.8% compounded semi-annually.The loan is structured to reduce the balance owing to $10 000 at the end of the 5 year period.How much are ST's payments at the end of each month?

A loan was repaid in 6.5 years by quarterly payments of $515.00 at 9.85% compounded semi-annually.What is the value of the loan?

A loan of $91 450.00 is to be repaid by equal semi-annual payments for 11 years.What is the size of each semi-annual payment if the interest is 9.24% compounded annually?

The loan will have a term of 54 months and monthly payments of $385.13.The interest rate on the loan is 8.84% compounded quarterly.What is the amount of money that was borrowed?

If a loan was repaid by semi-annual payments of $4720.00 in 6.5 years at 8.24% compounded quarterly,how much interest was paid?

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?

A loan is repaid by making payments of $6000.00 at the end of every six months for twelve years.If interest on the loan is 8% compounded quarterly,what was the principal of the loan?