Exam 12: Ordinary General Annuities

Ralph Bogita saves $50.00 at the end of each month and deposits the money in an account,paying 3.00% compounded semi-annually. a)How much will she accumulate in 20 years? b)How much of the accumulated amount is interest?

One month from now,Shiva will make his first monthly contribution of $250 to a Tax-Free Savings account (TFSA).Over the long run,he expects to earn 8% compounded annually.How long will it take for the contributions and accrued earnings to reach $100 000?

A series of payments of $900 are being made at the end of each year for the next 8 years.What is the future value 8 years from now,if money can earn 9% compounded semi-annually?

Note: The calculations for this question were done using Excel's RATE function. A $345 000.00 mortgage is repaid in 19 years by making monthly payments of $2486.44.What is the nominal annual rate of interest compounded semi-annually?

Conchita Martinez saves $17.25 at the end of each month and deposits the money in an account,paying 4.96% compounded quarterly. a)How much will she accumulate in 22 years? b)How much of the accumulated amount is interest?

What sum of money can be withdrawn from a fund of $46 950.00 invested at 6.5% compounded semi-annually at the end of every three months for twelve years?

A 21-year mortgage is amortized by making payments of $3052.61 at the end of every three months.If interest is 8.45% compounded annually,what was the original mortgage balance?

Calculate the accumulated value after twenty years of payments of $12 000.00 made at the end of each year if interest is 6% compounded semi-annually.

Calculate the accumulated value after ten years of payments of $1000.00 made at the end of each year if interest is 6% compounded monthly.

A mortgage requires payments of $4000.00 at the end of every six months for twelve years.If interest is 8% compounded quarterly,calculate the principal of the loan.

Bhamani is contributing to a RESP they have set up for their grandchildren.What amount will they have in the RESP after 13 years of contributing $185 at the end of every month if the plan earns 5.5% compounded quarterly?

Sabrina deposits $300.00 into a savings account at the end of each month for five years.If the accumulated value of the deposits is $20 000.00 and interest is compounded semi-annually,calculate the nominal rate of interest

What is the future value of payments of $230.00 made at the end of every three months in twenty-one years if interest is 7.65% compounded annually?

You make 6 quarterly deposits starting at $135 and increasing at a constant rate of 4.5%.The interest rate is 8.4% compounded quarterly.What is the size of the last deposit?

What is the accumulated value after 15.50 years of deposits of $500.00 earning interest at 4.00% compounded semi-annually if the deposits are made at the end of each quarter?

You are to receive $16 700 from your trust fund in 7.5 years.You negotiate a deal where you can withdraw $350 per month starting 2.75 years before you can withdraw the remainder of the funds.You are able earn 4.18% compounded annually on your money.How much is your trust fund reduced to?

A $ 120 000.00 mortgage is amortized over 25 years.If interest on the mortgage is 8.5% compounded semi-annually,calculate the size of monthly payments made at the end of each month.

Note: The calculations for this question were done using Excel's RATE function. A $160 000.00 mortgage with a 20-year term is repaid by making monthly payments of $1361.00.What is the rate of interest compounded semi-annually on the mortgage?

Mr.Lavergne accumulated $320 000.00 in an RRSP.He converted the RRSP into an RRIF and started to withdraw $7500.00 at the end of every three months from the fund.If interest is 4.68% compounded monthly,how many withdrawals can Mr.Lavergne make?

Calculate the amount of money that must be deposited at the end of every month into an account paying 12% compounded annually to accumulate to $100 000.00 in ten years.