Question 1

A scholarship fund has $50,000 in it today and it earns interest at j2 = 8%.From this amount,you wish to pay out semi-annual scholarships of $R,first scholarship 6-months from now,and each succeeding semi-annual scholarship thereafter increases by $50 forever.What is R?

Accepted Answer

A) $750 
B) $1950 
C) $2000 
D) $3375

Question 2

$500 is deposited at the end of every three months into an account crediting interest at j2 = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

Accepted Answer

A) $6885.90 
B) $3191.91 
C) $6886.94 
D) $3400.96

Question 3

Geri Ginger deposits $A today in a fund paying interest at j2 = 8%.She withdraws $500 six months from now and each succeeding semi-annual withdrawal is 10% higher.Withdrawals continue for 10 years in total.What is A? (Answer to nearest dollar)

Accepted Answer

A) $5,943 
B) $11,971 
C) $17,253 
D) $17,943

Question 4

If money is worth j4 =12%,what is the present value of a perpetuity of $1000 per quarter,first payment due in exactly 6 years (Answer to nearest dollar)?

Accepted Answer

A) $16,398 
B) $16,780 
C) $16,890 
D) $17,876

Question 5

You invest $A today.From this fund,you withdraw $500 today,followed by withdrawals that increase by 3% every 3 months.You plan to make a total of 20 quarterly withdrawals.If your investment earns interest at j4 = 8%,what is A?

Accepted Answer

A) $10,773.05 
B) $10,988.52 
C) $11,096.25 
D) $11,208.29

Question 6

You deposit $A today into a fund earning j1 = 10%.You wish to make annual withdrawals for a total of 20 withdrawals.The first withdrawal will be $20,000 and it will be made two years from now.Each succeeding withdrawal will be 5% higher.What is the value of A? (Answer to nearest dollar)

Accepted Answer

A) $205,162 
B) $220,220 
C) $242,242 
D) $266,466

Question 7

$500 is deposited at the end of every three months into an account crediting interest at j2 = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

Accepted Answer

A) $3191.91 
B) $3400.96 
C) $6885.90 
D) $6886.94

Question 8

A man deposits $50 into a fund today.The fund pays j4 = 6%.Three months later,he deposits $80 into the fund and every three month period after that he increases his deposit by $30 until he has made a total of 80 deposits.How much is in his fund at the time of his 80th deposit? (Answer to nearest dollar. )

Accepted Answer

A) $153,057 
B) $155,353 
C) $157,689 
D) $157,753

Question 9

At age 65 a man takes his life savings of $192,000 and buys a 25-year annuity that provides him with monthly payments.What is the size of these payments if the annual interest rate is j365 = 6%?

Accepted Answer

A) $1238.76 
B) $1258.64 
C) $1251.63 
D) $1237.06

Question 10

A company deposits $5000 at the end of every month into a fund that pays j4 = 18%.What is the equivalent quarterly deposit,made at the end of every 3-month period,if the fund credits simple interest for the fractional part of an interest period?

Accepted Answer

A) $15,222.80 
B) $15,225.00 
C) $15,450.00 
D) $15,685.13

Question 11

A $3000 loan is to be repaid with quarterly payments or $R over five years,1st payment due 3 months from now.What is R if j2 = 10%?

Accepted Answer

A) $190.84 
B) $191.89 
C) $342.24 
D) $388.51

Question 12

An ordinary perpetuity has semi-annual payments of $R and is purchased for $25,000.It pays interest at j2 = 9% for the first 5 years,and j2 = 7% thereafter.What is R? (Answer to nearest dollar)

Accepted Answer

A) $875 
B) $950 
C) $1038 
D) $1125

Question 13

Lottery winnings of $250,000 are to be paid out monthly for 10 years,with interest at j12 = 9%.The first payment,paid one month from now,is $R and each succeeding monthly payment is 1% higher.What is the value of R?

Accepted Answer

A) $1777.76 
B) $1791.10 
C) $1804.53 
D) $1817.54

Question 14

An alumnus sets up a scholarship at her university with a $10,000 donation.The annual scholarship will $R,with the first payment made today.What is R,if the money can be invested at j1 = 11%? (Answer to nearest dollar)

Accepted Answer

A) $893 
B) $991 
C) $1100 
D) $1221

Question 15

Jim buys a house and takes out a mortgage of $150,000 at j2 = 6%,to be repaid over 20 years with weekly payments of R.What is the value of R?

Accepted Answer

A) $244.37 
B) $246.06 
C) $247.75 
D) $267.07

Question 16

A varying annuity has 15 annual payments.The first payment is $2000,and each succeeding payment increases by 5%.What is the accumulated value of these payments immediately after the 15th deposit if j1 = 8%? (Answer to nearest dollar)

Accepted Answer

A) $24,814 
B) $72,883 
C) $78,713 
D) $51,586

Question 17

You deposit $10,000 today and withdraw $R at the end of every 6 month period for 5 years.If the interest rate is j1 = 12%,what is R?

Accepted Answer

A) $1347.76 
B) $1358.68 
C) $1387.05 
D) $1399.44

Question 18

You make deposits at the end of every 3-months into a fund earning interest at j4 = 8%.The first deposit is $500 and each succeeding deposit is 5% less than the preceding deposit.How much have you accumulated at the time of the 20th deposit?

Accepted Answer

A) $5528.00 
B) $7650.63 
C) $8053.30 
D) $8214.36

Question 19

You deposit $200 in a savings account.Each succeeding annual deposit is 3% higher.How much has been saved in your account immediately after you make your 20th deposit if j1 = 6%?

Accepted Answer

A) $3087.05 
B) $5326.56 
C) $9340.16 
D) $9900.57

Question 20

An investor makes deposits of $R every 2 weeks into a fund paying interest at j4 = 6%.At the time of the 130th deposit,she wishes to have accumulated $50,000.What is R?

Accepted Answer

A) $326.31 
B) $330.57 
C) $445.23 
D) $450.54

Exam 4: General and Other Annuities

A scholarship fund has $50,000 in it today and it earns interest at j₂ = 8%.From this amount,you wish to pay out semi-annual scholarships of $R,first scholarship 6-months from now,and each succeeding semi-annual scholarship thereafter increases by $50 forever.What is R?

$500 is deposited at the end of every three months into an account crediting interest at j₂ = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

Geri Ginger deposits $A today in a fund paying interest at j₂ = 8%.She withdraws $500 six months from now and each succeeding semi-annual withdrawal is 10% higher.Withdrawals continue for 10 years in total.What is A? (Answer to nearest dollar)

If money is worth j₄ =12%,what is the present value of a perpetuity of $1000 per quarter,first payment due in exactly 6 years (Answer to nearest dollar) ?

You invest $A today.From this fund,you withdraw $500 today,followed by withdrawals that increase by 3% every 3 months.You plan to make a total of 20 quarterly withdrawals.If your investment earns interest at j₄ = 8%,what is A?

You deposit $A today into a fund earning j₁ = 10%.You wish to make annual withdrawals for a total of 20 withdrawals.The first withdrawal will be $20,000 and it will be made two years from now.Each succeeding withdrawal will be 5% higher.What is the value of A? (Answer to nearest dollar)

$500 is deposited at the end of every three months into an account crediting interest at j₂ = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

At age 65 a man takes his life savings of $192,000 and buys a 25-year annuity that provides him with monthly payments.What is the size of these payments if the annual interest rate is j₃₆₅ = 6%?

A company deposits $5000 at the end of every month into a fund that pays j₄ = 18%.What is the equivalent quarterly deposit,made at the end of every 3-month period,if the fund credits simple interest for the fractional part of an interest period?

A $3000 loan is to be repaid with quarterly payments or $R over five years,1^st payment due 3 months from now.What is R if j₂ = 10%?

An ordinary perpetuity has semi-annual payments of $R and is purchased for $25,000.It pays interest at j₂ = 9% for the first 5 years,and j₂ = 7% thereafter.What is R? (Answer to nearest dollar)

Lottery winnings of $250,000 are to be paid out monthly for 10 years,with interest at j₁₂ = 9%.The first payment,paid one month from now,is $R and each succeeding monthly payment is 1% higher.What is the value of R?

An alumnus sets up a scholarship at her university with a $10,000 donation.The annual scholarship will $R,with the first payment made today.What is R,if the money can be invested at j₁ = 11%? (Answer to nearest dollar)

Jim buys a house and takes out a mortgage of $150,000 at j₂ = 6%,to be repaid over 20 years with weekly payments of R.What is the value of R?

A varying annuity has 15 annual payments.The first payment is $2000,and each succeeding payment increases by 5%.What is the accumulated value of these payments immediately after the 15^th deposit if j₁ = 8%? (Answer to nearest dollar)

You deposit $10,000 today and withdraw $R at the end of every 6 month period for 5 years.If the interest rate is j₁ = 12%,what is R?

You make deposits at the end of every 3-months into a fund earning interest at j₄ = 8%.The first deposit is $500 and each succeeding deposit is 5% less than the preceding deposit.How much have you accumulated at the time of the 20^th deposit?

You deposit $200 in a savings account.Each succeeding annual deposit is 3% higher.How much has been saved in your account immediately after you make your 20^th deposit if j₁ = 6%?

An investor makes deposits of $R every 2 weeks into a fund paying interest at j₄ = 6%.At the time of the 130^th deposit,she wishes to have accumulated $50,000.What is R?

Exam 4: General and Other Annuities

A scholarship fund has $50,000 in it today and it earns interest at j2 = 8%.From this amount,you wish to pay out semi-annual scholarships of $R,first scholarship 6-months from now,and each succeeding semi-annual scholarship thereafter increases by $50 forever.What is R?

$500 is deposited at the end of every three months into an account crediting interest at j2 = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

Geri Ginger deposits $A today in a fund paying interest at j2 = 8%.She withdraws $500 six months from now and each succeeding semi-annual withdrawal is 10% higher.Withdrawals continue for 10 years in total.What is A? (Answer to nearest dollar)

If money is worth j4 =12%,what is the present value of a perpetuity of $1000 per quarter,first payment due in exactly 6 years (Answer to nearest dollar) ?

You invest $A today.From this fund,you withdraw $500 today,followed by withdrawals that increase by 3% every 3 months.You plan to make a total of 20 quarterly withdrawals.If your investment earns interest at j4 = 8%,what is A?

You deposit $A today into a fund earning j1 = 10%.You wish to make annual withdrawals for a total of 20 withdrawals.The first withdrawal will be $20,000 and it will be made two years from now.Each succeeding withdrawal will be 5% higher.What is the value of A? (Answer to nearest dollar)

$500 is deposited at the end of every three months into an account crediting interest at j2 = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

At age 65 a man takes his life savings of $192,000 and buys a 25-year annuity that provides him with monthly payments.What is the size of these payments if the annual interest rate is j365 = 6%?

A company deposits $5000 at the end of every month into a fund that pays j4 = 18%.What is the equivalent quarterly deposit,made at the end of every 3-month period,if the fund credits simple interest for the fractional part of an interest period?

A $3000 loan is to be repaid with quarterly payments or $R over five years,1st payment due 3 months from now.What is R if j2 = 10%?

An ordinary perpetuity has semi-annual payments of $R and is purchased for $25,000.It pays interest at j2 = 9% for the first 5 years,and j2 = 7% thereafter.What is R? (Answer to nearest dollar)

Lottery winnings of $250,000 are to be paid out monthly for 10 years,with interest at j12 = 9%.The first payment,paid one month from now,is $R and each succeeding monthly payment is 1% higher.What is the value of R?

An alumnus sets up a scholarship at her university with a $10,000 donation.The annual scholarship will $R,with the first payment made today.What is R,if the money can be invested at j1 = 11%? (Answer to nearest dollar)

Jim buys a house and takes out a mortgage of $150,000 at j2 = 6%,to be repaid over 20 years with weekly payments of R.What is the value of R?

A varying annuity has 15 annual payments.The first payment is $2000,and each succeeding payment increases by 5%.What is the accumulated value of these payments immediately after the 15th deposit if j1 = 8%? (Answer to nearest dollar)

You deposit $10,000 today and withdraw $R at the end of every 6 month period for 5 years.If the interest rate is j1 = 12%,what is R?

You make deposits at the end of every 3-months into a fund earning interest at j4 = 8%.The first deposit is $500 and each succeeding deposit is 5% less than the preceding deposit.How much have you accumulated at the time of the 20th deposit?

You deposit $200 in a savings account.Each succeeding annual deposit is 3% higher.How much has been saved in your account immediately after you make your 20th deposit if j1 = 6%?

An investor makes deposits of $R every 2 weeks into a fund paying interest at j4 = 6%.At the time of the 130th deposit,she wishes to have accumulated $50,000.What is R?

A scholarship fund has $50,000 in it today and it earns interest at j₂ = 8%.From this amount,you wish to pay out semi-annual scholarships of $R,first scholarship 6-months from now,and each succeeding semi-annual scholarship thereafter increases by $50 forever.What is R?

$500 is deposited at the end of every three months into an account crediting interest at j₂ = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

Geri Ginger deposits $A today in a fund paying interest at j₂ = 8%.She withdraws $500 six months from now and each succeeding semi-annual withdrawal is 10% higher.Withdrawals continue for 10 years in total.What is A? (Answer to nearest dollar)

If money is worth j₄ =12%,what is the present value of a perpetuity of $1000 per quarter,first payment due in exactly 6 years (Answer to nearest dollar) ?

You invest $A today.From this fund,you withdraw $500 today,followed by withdrawals that increase by 3% every 3 months.You plan to make a total of 20 quarterly withdrawals.If your investment earns interest at j₄ = 8%,what is A?

You deposit $A today into a fund earning j₁ = 10%.You wish to make annual withdrawals for a total of 20 withdrawals.The first withdrawal will be $20,000 and it will be made two years from now.Each succeeding withdrawal will be 5% higher.What is the value of A? (Answer to nearest dollar)

$500 is deposited at the end of every three months into an account crediting interest at j₂ = 10%.The fund credits simple interest for fractional parts of an interest period.What is the accumulated value of the fund at the end of 3 years?

At age 65 a man takes his life savings of $192,000 and buys a 25-year annuity that provides him with monthly payments.What is the size of these payments if the annual interest rate is j₃₆₅ = 6%?

A company deposits $5000 at the end of every month into a fund that pays j₄ = 18%.What is the equivalent quarterly deposit,made at the end of every 3-month period,if the fund credits simple interest for the fractional part of an interest period?

A $3000 loan is to be repaid with quarterly payments or $R over five years,1^st payment due 3 months from now.What is R if j₂ = 10%?

An ordinary perpetuity has semi-annual payments of $R and is purchased for $25,000.It pays interest at j₂ = 9% for the first 5 years,and j₂ = 7% thereafter.What is R? (Answer to nearest dollar)

Lottery winnings of $250,000 are to be paid out monthly for 10 years,with interest at j₁₂ = 9%.The first payment,paid one month from now,is $R and each succeeding monthly payment is 1% higher.What is the value of R?

An alumnus sets up a scholarship at her university with a $10,000 donation.The annual scholarship will $R,with the first payment made today.What is R,if the money can be invested at j₁ = 11%? (Answer to nearest dollar)

Jim buys a house and takes out a mortgage of $150,000 at j₂ = 6%,to be repaid over 20 years with weekly payments of R.What is the value of R?

A varying annuity has 15 annual payments.The first payment is $2000,and each succeeding payment increases by 5%.What is the accumulated value of these payments immediately after the 15^th deposit if j₁ = 8%? (Answer to nearest dollar)

You deposit $10,000 today and withdraw $R at the end of every 6 month period for 5 years.If the interest rate is j₁ = 12%,what is R?

You make deposits at the end of every 3-months into a fund earning interest at j₄ = 8%.The first deposit is $500 and each succeeding deposit is 5% less than the preceding deposit.How much have you accumulated at the time of the 20^th deposit?

You deposit $200 in a savings account.Each succeeding annual deposit is 3% higher.How much has been saved in your account immediately after you make your 20^th deposit if j₁ = 6%?

An investor makes deposits of $R every 2 weeks into a fund paying interest at j₄ = 6%.At the time of the 130^th deposit,she wishes to have accumulated $50,000.What is R?