Exam 11: Ordinary Simple Annuities

How many semi-annually payments will it take for $500.00 deposited at the end of each half year to amount to $10 000.00 at 6% compounded semi-annually?

What payment is required at the end of each month for 3 years to repay a loan of $8000.00 at 6.4% compounded monthly?

Mr.Hughes has contributed $4000.00 per year for the last ten years into a RRSP account earning 9.00% compounded annually.Suppose he leaves the accumulated contributions for another five years in the RRSP at the same rate of interest. a)How much will Mr.Hughes have in total in his RRSP account? b)How much did Mr.hughes contribute? c)How much will be interest?

A loan of $19 850.00 is to be repaid in quarterly payments of $620.00.How many payments are required to repay the loan at 6.5% compounded quarterly?

What is the nominal rate of interest on a loan of $6800.00 repaid in semi-annual installments of $1175.00 in six years?

What is the future value of an annuity with monthly deposits of $277 for a period of 11.5 years at an interest rate of 7.44% compounded monthly? The deposits are made at the end of the month.

The Chretiens bought a rental property valued at $125 000.00 by paying 25% down and mortgaging the balance over 21.5 years through equal payments at the end of each quarter at 8.6% compounded quarterly.What was the size of the quarterly payments?

How much interest is included in the accumulated value of $4750 paid at the end of every six months for 4.5 years if the interest rate is 8.5% compounded semi-annually?

What is the discounted value of deposits of $150.00 made at the end of each month for fourteen years if interest is 4.5% compounded monthly?

Doris purchased a piano with $1300.00 down and monthly payments of $214.00 for two years at 9.72% compounded monthly.What was the purchase price of the piano?

You want to be able to travel and withdraw $3750 at the end of every month during your yearlong trip.During your trip your travel fund will earn 6.24% compounded monthly.What is the size of your travel fund if you want to be able to start your trip in 4 years and 7 months?

Note: The calculations for this question were done using Excel's RATE function. A property worth $191 000.00 can be purchased for 15% down and quarterly mortgage payments of $1972.00 for 30 years.What effective rate of interest is charged?

An installment contract for the purchase of a computer requires payments of $30.00 at the end of each month for the next three years.Suppose interest is 18.00% p.a.compounded monthly. a)What is the amount financed? b)How much is the interest cost?

How many yearly payments will it take for $25 000.00 deposited at the end of each year to amount to $1 000 000.00 at 9% compounded yearly?

Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly.The annuity can be classified as

When the conversion period is different from the payment period,an annuity is called:

Bonny converted an RRSP balance of $176 875.67 into an RRIF that will pay her $2720.00 at the end of every month for 8 years.What is the nominal rate of interest?

In what period of time could you pay back a loan of $13 900.00 by making monthly payments of $296.00 if interest is 6.5% compounded monthly?

A father wants to provide an annuity of $3350.00 payable at the end of each 6 months during the three years his son attends college.It will be six years before his son goes to college.What single deposit must he make today that will finance the annuity,if he can invest his money at 7.84% p.a.compounded semi-annually?

Charter has been contributing $900 at the end of each month for the past 15 months to a savings plan that earns 4% compounded monthly.What amount will he have one year from now,if he continues with the plan?