Exam 12: Ordinary General Annuities

A mortgage of $198 000.00 is to be amortized by payments over 22.5 years.If the payments are made at the end of each month and interest is 8.75% compounded semi-annually,what is the size of the monthly payments?

Note: The calculations for this question were done using Excel's RATE function. Compute the nominal annual rate of interest on a loan of $67 000.00 repaid in semi-annual installments of $6540.00 in 11.5 years.

You lease a car for monthly payments of $610.23 at the end of each month for 54 months.There is a no security deposit sale going on.The interest rate on the lease is 3.9% compounded annually.The buy-out is $19552 at the end of the lease.How expensive is the vehicle?

For how long will Harold have to make payments of $550.00 at the end of every three months to repay a loan of $16 900.00 if interest is 9% compounded monthly?

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years

How many deposits of $6100.00 made at the end of every 6 months are needed to accumulate to $172 000.00 at 5.24% compounded quarterly?

Dion is planning to buy a brand new BMW.He plans to keep the car for 3 years and then trade it in.He borrows $37 000 at 7.2% compounded semi-annually to purchase the car.What monthly payment will reduce the balance on the loan after 3 years to the expected trade-in value of $16 500?

A real estate developer bought land for $170 000.00 down and monthly payments of $10 450.00 for 5 years.What is the equivalent cash price if money is worth 7.75% compounded semi-annually?

For how long will Jessica have to make payments of $1200.00 at the end of every three months to repay a loan of $10 000.00 if interest is 12% compounded semi-annually?

Note: The calculations for this question were done using Excel's RATE function. What is the rate of interest compounded quarterly if a loan of $31 500.00 is repaid in seven years by payments of $2712.00 made at the end of every six months?

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 $7000 at the end of each month.Based on a 22-year life expectancy and money worth 8% compounded semi-annually,calculate the current economic value of Don's pension.

Calculate the amount of money that must be deposited at the end of every three months into an account paying 6% compounded monthly to accumulate to $12 500.00 in ten years?

Kelsey bought a car priced at $19 700.00 for 10% down and equal monthly payments for 4.5 years.If interest is 8.22% compounded semi-annually,what is the size of the monthly payment?

What annually compounded rate of return must Thiva earn in her TFSA account in order for month end contributions of $950 to accumulate $1 million after 25 years?

You won $150 000.00 in a lottery and you want to set some of that sum of money aside for 6 years.After 6 years you would like to receive $2710.00 at the end of every 6 months for 8 years.If interest is 6% compounded quarterly,how much of your winnings must you set aside?

For her daughter's university education,Carla Hackl has invested an inheritance in a fund paying 9.2% compounded quarterly.If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now,how much was the inheritance?

How much must be deposited at the end of each quarter for 5 years to accumulate to $27 000.00 at 6.84% compounded monthly?

For their daughter's future education David and Bonnie set a fund in which they invest at the end of every six months.The first investment is $100 and they plan to increase their investments at a constant rate of 0.5%.If the fund earns 2 .4% compounded semi-annually,how much money will be in the fund in 16 years when their daughter goes to college?

You miss the 11^th to 13^th payments of a loan.The loan payments are $519.27 each month and the interest rate is 8.45% compounded annually.How much are you behind in your payments on the day that you miss the 13^th payment?

Momin plans to buy a house on cash instead of paying mortgage.He plans to set aside $14 400 at the end of each year for 15 years.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.Money decreases in value by 2.5% per annum as well.How long will it take Momin to reach his target?