Question 1

What is the discounted value of $3000.00 paid at the end of every six months for 5 years if interest is 8.00% compounded yearly?

Accepted Answer

PMT = 3000,i = 0.08,n = 5 × 2 = 10,c = p = - 1 = 0.0392305 PV_g = 3000.00 = 3000.00(8.142055396)= 24 426.17

Question 2

Mark deposits $900 at the end of each month in a savings account earning 4.5% quarterly.How soon can he buy his first car assuming that he needs $8 000 for a decent car.

Accepted Answer

A)  8.76 months
B)  8.52 months
C)  9.06 months
D)  9 years
E)  8.86 months A

Question 3

You won $250 000.00 in a lottery and you want to set some of that sum of money aside for 11.5 years.After 11.5 years,you would like to receive $4500.00 at the end of each month for 4.75 years.If the interest is 6.79% compounded annually,how much of your winnings must you set aside?

Accepted Answer

PMT = 4500,i = 0.0679,n = 4.75 × 12 = 57,c = Balance after 11.5 years (annuity starts) p = - 1 = 0.0054895 PV_g = 4500.00 = 4500.00(48.8299465)= $219 734.76 Balance today PV = 219734.76(1.0679)^-11.5 = $103 227.88

Question 4

What is the principal from which $279.00 can be withdrawn at the end of each month for 17.5 years if interest is 5.44% compounded quarterly?

Accepted Answer

The answer of What is the principal from which $279.00...

Question 5

Mrs.Engleder has made deposits of $750.00 at the end of every six months for twenty-three years.If interest is 3.72% compounded monthly,how much will Mrs.Engleder have accumulated six years after the last deposit?

Accepted Answer

The answer of Mrs.Engleder has made deposits of $750.00 at...

Question 6

What is the discounted value of $4760.00 paid at the end of each year for 7 years if interest is 6.52% compounded quarterly?

Accepted Answer

The answer of What is the discounted value of $4760.00...

Question 7

If a loan was repaid by monthly payments of $9230.00 in 7.5 years at 6.15% compounded annually,how much interest was paid?

Accepted Answer

The answer of If a loan was repaid by monthly...

Question 8

What is the final amount of an investment where you are making quarterly deposits of $672.31 at the end of the payment period for 7 years and 9 months? The interest rate is 6.16% compounded semi-annually.

Accepted Answer

A)  $26 811.16
B)  $28 611.16
C)  $26 611.57
D)  $28 811.16
E)  $26 407.57

Question 9

How much must be contributed into an RRSP at the end of each year for 37 years to accumulate to $213 000.00 if interest is 8.04% compounded quarterly?

Accepted Answer

The answer of How much must be contributed into an...

Question 10

Edward Martin borrowed $15 810.00 from his uncle to finance his graduate studies.The loan agreement calls for equal payments at the end of each month for 6 years.The payments are deferred for 3 years and interest is 8.12% compounded semi-annually.What is the size of the monthly payments?

Accepted Answer

The answer of Edward Martin borrowed $15 810.00 from his...

Question 11

Calculate the accumulated value after ten years of payments of $1000.00 made at the end of each month if interest is 4% compounded semi-annually.

Accepted Answer

The answer of Calculate the accumulated value after ten years...

Question 12

Note: This problem is solved using CalcPro for iPad
Lahore Gym allows members to pay the members to pay the annual membership fee by a single payment of $240 at the beginning of the year,or by payments of $22 at the beginning of each month.What effective rate of interest is paid by members,who choose to pay by month?

Accepted Answer

The answer of Note: This problem is solved using CalcPro...

Question 13

Sam took a $5000 loan to build a deck in the backyard.The loan requires payments at the end of each quarter or 4 years.If the interest on the loan is 9% compounded monthly,what is the size of each payment,Sam requires to make

Accepted Answer

A)  $447.83
B)  $353.98
C)  $332.80
D)  $1321.64
E)  $376.08

Question 14

A 22-year mortgage is amortized by payments of $1761.50 made at the end of each month.If interest is 9.65% compounded semi-annually,what is the mortgage principal?

Accepted Answer

The answer of A 22-year mortgage is amortized by payments...

Question 15

A mortgage of $326 000 is to be repaid by making payments of $2500 at the end of each month.If interest is 4.75% compounded semi-annually,what is the term of the mortgage?

Accepted Answer

A)  183 months
B)  106 months
C)  182 months
D)  184 months
E)  105 months

Question 16

What is the accumulated value after 11.25 years of monthly deposits of $415.00 earning interest at 5.56% compounded semi-annually if the deposits are made at the end of each month?

Accepted Answer

The answer of What is the accumulated value after 11.25...

Question 17

You buy a motorcycle for $52 523 plus freight of $724 and other delivery charges of $561.You have saved 25% of the total purchase price towards a down payment.The bank is willing to finance the purchase of the motorcycle at 9.86% compounded quarterly.What is the size of your monthly payment if the loan is for 4.5 years?

Accepted Answer

A)  $296.80
B)  $926.80
C)  $962.80
D)  $996.80
E)  $262.80

Question 18

A student bought a rental property for $40 000.00 down and monthly payments of $1000.00 for 5 years.What is the equivalent cash price if money is worth 5.75% compounded semi-annually?

Accepted Answer

The answer of A student bought a rental property for...

Question 19

Saba gets a year-end bonus in December every year before the Christmas.She plans to invest $1000 from the bonus at the end of every year into mutual funds RRSP,which are expected to grow at the rate of 8% compounded semi-annually.What will be the total value of her periodic investments after 25 years?

Accepted Answer

The answer of Saba gets a year-end bonus in December...

Question 20

A mortgage requires payments of $1000.00 at the end of every month for twenty-five years.If interest is 6% compounded semi-annually,calculate the principal of the loan.

Accepted Answer

A)  $156 297.23
B)  $155 206.86
C)  $46 188.41
D)  $300 000.00
E)  $33 328.64

Exam 12: Ordinary General Annuities