Question 1

A couple buys a house and takes out a $250,000 mortgage.They plan to make payments twice a month,with the first payment one half month from now.If they choose a 25 year amortization period and j2 = 4.2%,what is the size of their bi-monthly monthly payments?

Accepted Answer

A) $670.57 
B) $667.62 
C) $648.48 
D) $618.94

Question 2

Jill deposits $500 in her savings account at the end of 1 month,with each succeeding deposit being $5 less.The account pays interest at j12 = 6%.How much has she accumulated at the end of 7 years?

Accepted Answer

A) $21,023.20 
B) $31,963.04 
C) $47,429.84 
D) $72,110.88

Question 3

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 5 years after the 15th deposit if j1 = 8%? (Answer to nearest dollar)

Accepted Answer

A) $63,412 
B) $101,989 
C) $107,089 
D) $112,443

Question 4

Charlie makes monthly deposits into an account earning j12 = 6%.His first deposit is $P and each monthly deposit thereafter increases by $80.One month after his 24th deposit,he has accumulated $36,415.What is P?

Accepted Answer

A) $530.95 
B) $528.30 
C) $526.44 
D) $523.85

Question 5

Payments of $500 are made at the end of each month to a savings account paying j4 = 10%.How much will be in the account at the end of 5 years if simple interest is used for part of a interest conversion period?

Accepted Answer

A) $38,316.98 
B) $38,634.54 
C) $38,636.29 
D) $39,111.19

Question 6

You deposit $5000 every year into a fund earning interest at j2 = 7%,starting on your 30th birthday with your final deposit made on your 65th birthday.How much have you accumulated on your 65th birthday? (Answer to nearest dollar)

Accepted Answer

A) $691,184 
B) $709,921 
C) $744,567 
D) $765,485

Question 7

A mortgage of $A is obtained at a rate of j2 = 6%.The mortgage is to be paid off with monthly payments of $700 for 25 years (first payment one month from now).What is A? (Answer to nearest dollar. )

Accepted Answer

A) $108,065 
B) $108,645 
C) $109,408 
D) $110,302

Question 8

A scholarship pays $1000 at the end of first year,$1200 at the end of the second year,$1400 at the end of the third year,etc.Immediately after the 4th scholarship payment is made,the scholarship fund is refinanced at j1 = 4%.How much money is needed at that time to make sure the payments can continue in this fashion forever?

Accepted Answer

A) $165,000 
B) $150,000 
C) $160,000 
D) $170,000

Question 9

Deposits of $1000 are made at the end of every half year into a fund earning interest at j1 = 10%.The fund credits simple interest for any fractional part of an interest period.How much is in the fund at the end of 10 years?

Accepted Answer

A) $31,874.80 
B) $32,652.74 
C) $32,671.72 
D) $33,468.54

Question 10

Deposits of $2500 are made at the end of each 3-month period to a savings account paying j2 = 8%.How much will be in the account at the end of 4 years if simple interest is used for the fractional part of an interest period?

Accepted Answer

A) $46,301.49 
B) $46,527.33 
C) $46,531.84 
D) $46,992.55

Question 11

An investor makes deposits twice a month into a fund paying interest at j4 = 6.5%.At the time of the 80th deposit,she wishes to have $100,000.What deposit is needed?

Accepted Answer

A) $1121.99 
B) $1131.50 
C) $1379.80 
D) $1391.00

Question 12

A couple takes out a mortgage for $180,000 at j2 = 8%.They plan to make payments twice a month over 25-years.What is the size of the payment?

Accepted Answer

A) $632.94 
B) $634.05 
C) $685.77 
D) $686.89

Question 13

A couple buys a house for $165,000 with $45,000 as a down payment.They plan to make payments twice a month (24 payments a year),with the first payment half a month from now.If they choose a 25 year amortization period and j2 = 8%,what is the size of their mortgage payments?

Accepted Answer

A) $457.18 
B) $462.85 
C) $469.22 
D) $628.68

Question 14

Dave decides to donate $10,000 to UWO in order to set up scholarship fund paying $R every year forever.If the first scholarship is to be paid out immediately and if j1 = 7%,what is R?

Accepted Answer

A) $700.00 
B) $675.45 
C) $654.21 
D) $651.00

Question 15

A scholarship fund has $50,000 in it today and it earns interest at j2 = 8%.The fund is to pay out a perpetuity of $R every 6-months,with the first payment to be made 1 year from today.What is R? (Answer to nearest dollar)

Accepted Answer

A) $2163 
B) $2080 
C) $2000 
D) $1923

Question 16

A person deposits $100 into a fund paying interest at j4 = 6%.Each succeeding quarterly deposit is to be 2% higher.How much has been accumulated in the fund immediately after the 18th deposit?

Accepted Answer

A) $2454.38 
B) $2418.11 
C) $2089.92 
D) $1877.39

Question 17

A scholarship fund is set up to pay out $10,000 in one year's time,with each succeeding annual scholarship being $100 higher.Annual scholarships are to continue forever.If j1 = 10%,how much money is need to be invested today to fund this scholarship plan?

Accepted Answer

A) $100,000 
B) $101,000 
C) $109,091 
D) $110,000

Question 18

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j2 = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

Accepted Answer

A) $48,984.91 
B) $48,504.67 
C) $48,499.97 
D) $48,024.42

Question 19

Dave decides to donate $10,000 to UWO in order to set up scholarship fund.The first scholarship will be $R,payable one year from now,with each succeeding annual scholarship being $50 higher.If j1 = 7%,what is R?

Accepted Answer

A) $750 
B) $700 
C) $650 
D) Dave does not have enough money to fund this scholarship

Question 20

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j2 = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

Accepted Answer

A) $48,024.42 
B) $48,499.97 
C) $48,504.67 
D) $48,984.92

Exam 4: General and Other Annuities

A couple buys a house and takes out a $250,000 mortgage.They plan to make payments twice a month,with the first payment one half month from now.If they choose a 25 year amortization period and j₂ = 4.2%,what is the size of their bi-monthly monthly payments?

Jill deposits $500 in her savings account at the end of 1 month,with each succeeding deposit being $5 less.The account pays interest at j₁₂ = 6%.How much has she accumulated at the end of 7 years?

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 5 years after the 15^th deposit if j₁ = 8%? (Answer to nearest dollar)

Charlie makes monthly deposits into an account earning j₁₂ = 6%.His first deposit is $P and each monthly deposit thereafter increases by $80.One month after his 24^th deposit,he has accumulated $36,415.What is P?

Payments of $500 are made at the end of each month to a savings account paying j₄ = 10%.How much will be in the account at the end of 5 years if simple interest is used for part of a interest conversion period?

You deposit $5000 every year into a fund earning interest at j₂ = 7%,starting on your 30^th birthday with your final deposit made on your 65^th birthday.How much have you accumulated on your 65^th birthday? (Answer to nearest dollar)

A mortgage of $A is obtained at a rate of j₂ = 6%.The mortgage is to be paid off with monthly payments of $700 for 25 years (first payment one month from now) .What is A? (Answer to nearest dollar. )

Deposits of $1000 are made at the end of every half year into a fund earning interest at j₁ = 10%.The fund credits simple interest for any fractional part of an interest period.How much is in the fund at the end of 10 years?

Deposits of $2500 are made at the end of each 3-month period to a savings account paying j₂ = 8%.How much will be in the account at the end of 4 years if simple interest is used for the fractional part of an interest period?

An investor makes deposits twice a month into a fund paying interest at j₄ = 6.5%.At the time of the 80^th deposit,she wishes to have $100,000.What deposit is needed?

A couple takes out a mortgage for $180,000 at j₂ = 8%.They plan to make payments twice a month over 25-years.What is the size of the payment?

A couple buys a house for $165,000 with $45,000 as a down payment.They plan to make payments twice a month (24 payments a year) ,with the first payment half a month from now.If they choose a 25 year amortization period and j₂ = 8%,what is the size of their mortgage payments?

Dave decides to donate $10,000 to UWO in order to set up scholarship fund paying $R every year forever.If the first scholarship is to be paid out immediately and if j₁ = 7%,what is R?

A scholarship fund has $50,000 in it today and it earns interest at j₂ = 8%.The fund is to pay out a perpetuity of $R every 6-months,with the first payment to be made 1 year from today.What is R? (Answer to nearest dollar)

A person deposits $100 into a fund paying interest at j₄ = 6%.Each succeeding quarterly deposit is to be 2% higher.How much has been accumulated in the fund immediately after the 18^th deposit?

A scholarship fund is set up to pay out $10,000 in one year's time,with each succeeding annual scholarship being $100 higher.Annual scholarships are to continue forever.If j₁ = 10%,how much money is need to be invested today to fund this scholarship plan?

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j₂ = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

Dave decides to donate $10,000 to UWO in order to set up scholarship fund.The first scholarship will be $R,payable one year from now,with each succeeding annual scholarship being $50 higher.If j₁ = 7%,what is R?

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j₂ = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

Exam 4: General and Other Annuities

A couple buys a house and takes out a $250,000 mortgage.They plan to make payments twice a month,with the first payment one half month from now.If they choose a 25 year amortization period and j2 = 4.2%,what is the size of their bi-monthly monthly payments?

Jill deposits $500 in her savings account at the end of 1 month,with each succeeding deposit being $5 less.The account pays interest at j12 = 6%.How much has she accumulated at the end of 7 years?

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 5 years after the 15th deposit if j1 = 8%? (Answer to nearest dollar)

Charlie makes monthly deposits into an account earning j12 = 6%.His first deposit is $P and each monthly deposit thereafter increases by $80.One month after his 24th deposit,he has accumulated $36,415.What is P?

Payments of $500 are made at the end of each month to a savings account paying j4 = 10%.How much will be in the account at the end of 5 years if simple interest is used for part of a interest conversion period?

You deposit $5000 every year into a fund earning interest at j2 = 7%,starting on your 30th birthday with your final deposit made on your 65th birthday.How much have you accumulated on your 65th birthday? (Answer to nearest dollar)

A mortgage of $A is obtained at a rate of j2 = 6%.The mortgage is to be paid off with monthly payments of $700 for 25 years (first payment one month from now) .What is A? (Answer to nearest dollar. )

Deposits of $1000 are made at the end of every half year into a fund earning interest at j1 = 10%.The fund credits simple interest for any fractional part of an interest period.How much is in the fund at the end of 10 years?

Deposits of $2500 are made at the end of each 3-month period to a savings account paying j2 = 8%.How much will be in the account at the end of 4 years if simple interest is used for the fractional part of an interest period?

An investor makes deposits twice a month into a fund paying interest at j4 = 6.5%.At the time of the 80th deposit,she wishes to have $100,000.What deposit is needed?

A couple takes out a mortgage for $180,000 at j2 = 8%.They plan to make payments twice a month over 25-years.What is the size of the payment?

A couple buys a house for $165,000 with $45,000 as a down payment.They plan to make payments twice a month (24 payments a year) ,with the first payment half a month from now.If they choose a 25 year amortization period and j2 = 8%,what is the size of their mortgage payments?

Dave decides to donate $10,000 to UWO in order to set up scholarship fund paying $R every year forever.If the first scholarship is to be paid out immediately and if j1 = 7%,what is R?

A scholarship fund has $50,000 in it today and it earns interest at j2 = 8%.The fund is to pay out a perpetuity of $R every 6-months,with the first payment to be made 1 year from today.What is R? (Answer to nearest dollar)

A person deposits $100 into a fund paying interest at j4 = 6%.Each succeeding quarterly deposit is to be 2% higher.How much has been accumulated in the fund immediately after the 18th deposit?

A scholarship fund is set up to pay out $10,000 in one year's time,with each succeeding annual scholarship being $100 higher.Annual scholarships are to continue forever.If j1 = 10%,how much money is need to be invested today to fund this scholarship plan?

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j2 = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

Dave decides to donate $10,000 to UWO in order to set up scholarship fund.The first scholarship will be $R,payable one year from now,with each succeeding annual scholarship being $50 higher.If j1 = 7%,what is R?

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j2 = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

A couple buys a house and takes out a $250,000 mortgage.They plan to make payments twice a month,with the first payment one half month from now.If they choose a 25 year amortization period and j₂ = 4.2%,what is the size of their bi-monthly monthly payments?

Jill deposits $500 in her savings account at the end of 1 month,with each succeeding deposit being $5 less.The account pays interest at j₁₂ = 6%.How much has she accumulated at the end of 7 years?

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 5 years after the 15^th deposit if j₁ = 8%? (Answer to nearest dollar)

Charlie makes monthly deposits into an account earning j₁₂ = 6%.His first deposit is $P and each monthly deposit thereafter increases by $80.One month after his 24^th deposit,he has accumulated $36,415.What is P?

Payments of $500 are made at the end of each month to a savings account paying j₄ = 10%.How much will be in the account at the end of 5 years if simple interest is used for part of a interest conversion period?

You deposit $5000 every year into a fund earning interest at j₂ = 7%,starting on your 30^th birthday with your final deposit made on your 65^th birthday.How much have you accumulated on your 65^th birthday? (Answer to nearest dollar)

A mortgage of $A is obtained at a rate of j₂ = 6%.The mortgage is to be paid off with monthly payments of $700 for 25 years (first payment one month from now) .What is A? (Answer to nearest dollar. )

Deposits of $1000 are made at the end of every half year into a fund earning interest at j₁ = 10%.The fund credits simple interest for any fractional part of an interest period.How much is in the fund at the end of 10 years?

Deposits of $2500 are made at the end of each 3-month period to a savings account paying j₂ = 8%.How much will be in the account at the end of 4 years if simple interest is used for the fractional part of an interest period?

An investor makes deposits twice a month into a fund paying interest at j₄ = 6.5%.At the time of the 80^th deposit,she wishes to have $100,000.What deposit is needed?

A couple takes out a mortgage for $180,000 at j₂ = 8%.They plan to make payments twice a month over 25-years.What is the size of the payment?

A couple buys a house for $165,000 with $45,000 as a down payment.They plan to make payments twice a month (24 payments a year) ,with the first payment half a month from now.If they choose a 25 year amortization period and j₂ = 8%,what is the size of their mortgage payments?

Dave decides to donate $10,000 to UWO in order to set up scholarship fund paying $R every year forever.If the first scholarship is to be paid out immediately and if j₁ = 7%,what is R?

A scholarship fund has $50,000 in it today and it earns interest at j₂ = 8%.The fund is to pay out a perpetuity of $R every 6-months,with the first payment to be made 1 year from today.What is R? (Answer to nearest dollar)

A person deposits $100 into a fund paying interest at j₄ = 6%.Each succeeding quarterly deposit is to be 2% higher.How much has been accumulated in the fund immediately after the 18^th deposit?

A scholarship fund is set up to pay out $10,000 in one year's time,with each succeeding annual scholarship being $100 higher.Annual scholarships are to continue forever.If j₁ = 10%,how much money is need to be invested today to fund this scholarship plan?

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j₂ = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?

Dave decides to donate $10,000 to UWO in order to set up scholarship fund.The first scholarship will be $R,payable one year from now,with each succeeding annual scholarship being $50 higher.If j₁ = 7%,what is R?

Gerry deposits $2000 at the end of every 3-month period in a fund earning interest at j₂ = 8%.If the fund pays simple interest for the fractional part of any interest period,what is the accumulated value of Gerry's deposits at the end of 5 years?