Exam 11: Ordinary Simple Annuities

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?

You currently have $4000 saved towards the purchase of a new car.You want to be able to buy a car for $15000 in 4 years.Your money is earning 5% compounded yearly.What is the size of your yearly deposit?

How long will it take for quarterly deposits of $425 to accumulate to be $16440 at an interest rate of 8.48% compounded quarterly? (Final answer in years and months e.g.,7 years and 4.24 months)

Salem plans to deposit $2200 every 6 months for 15 years to save for his son's higher education.The rate of return will be 4% compounded semi-annually for the first 5 years and 8% compounded semi-annually for the subsequent 10 years.Calculate the future value of this simple annuity,if he stops payment after 5 years.

Salem plans to deposit $2200 every 6 months for 15 years to save for his son's higher education.The rate of return will be 4% compounded semi-annually for the first 5 years and 8% compounded semi-annually for the subsequent 10 years.Calculate the future value of this simple annuity.

Calculate the present value of 120 payments of $50.00 made at the end of each of 120 consecutive months respectively if money is worth 12% compounded monthly.

Leanne Simon made ordinary annuity payments of $81.00 per month for fourteen years earning 9% compounded monthly.How much interest is included in the future value of the annuity?

Jane borrowed $20 000 to help finance her BBA at UOIT with no interest until she finishes her education.She starts a job with a local bank immediately after finishing her BBA and contracts to pay her loan in monthly payments of $300 each.If the payments are due at the end of each month and the interest is compounded 4% monthly,how long will Jane have to make monthly payments?

Note: The calculations for this question were done using Excel's RATE function. What is the effective annual rate of interest on a loan of $9200.00 repaid in semi-annual installments of $810.00 in nine years?

If a loan was repaid by quarterly payments of $715.00 over 7 years at 8.36% compounded quarterly,how much money had been borrowed?

Sofia plans to save for next two years.She plans to put away $1000 every 6 months starting 6 months from now.What will be the value of her savings after two years if her savings accounts earns at a rate of 8% compounded semi-annually?

If a loan was repaid by ordinary monthly payments of $715.00 in seven years at 9.12%,compounded monthly,how much interest was paid?

If a loan was repaid by ordinary yearly payments of $2000.00 in five years at 9.00%,compounded yearly,how much interest was paid?

A $5000.00 loan requires payments at the end of each quarter for five years.If the interest rate on the loan is 8% compounded quarterly,calculate the size of each payment.

What payment made at the end of each month for 13 years will amount to $17 520.00 at 9.66% compounded monthly?

What payment is required at the end of each month for 5 years to repay a loan of $20 000.00 at 6.0% compounded monthly?

The term of annuity is

Calculate the present value of five payments of $1500.00 made at the end of each of five consecutive years respectively if money is worth 6% compounded annually.

$1000.00 is deposited at the end of every month into an account earning 6.00% compounded monthly.If the balance in the account five years after the last deposit is to be $50 000.00,how many deposits are needed?

How much interest is included in the accumulated value of $250 paid at the end of every month for 5 years if the interest rate is 4.0% compounded monthly?