2. Classify the type of annuity described in the following scenario. A student loan carrying interest of 2.5%, compounded quarterly is repaid with payments of $1000 at the end of every three months. Mr. Smith made 24 monthly deposits of $250 into an account that earns 8% compounded quarterly. How much will be in the account three years after his last deposit? a $6,522.87 b $7,021.41 $8,218.15 d $8,272.57 A $12,000 loan is repaid by semi-annual payments of $1,500 each. Interest on the loan is 10% compounded semi-annually. How long will it take to pay off the loan? с a 10 years b 5.5 years с 5 years d 21 years

2. Classify the type of annuity described in the following scenario. A student loan carrying interest of 2.5%, compounded quarterly is repaid with payments of $1000 at the end of every three months. Mr. Smith made 24 monthly deposits of $250 into an account that earns 8% compounded quarterly. How much will be in the account three years after his last deposit? a $6,522.87 b $7,021.41 $8,218.15 d $8,272.57 A $12,000 loan is repaid by semi-annual payments of $1,500 each. Interest on the loan is 10% compounded semi-annually. How long will it take to pay off the loan? с a 10 years b 5.5 years с 5 years d 21 years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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3. Use the annuity formula to calculate the future value of an annuity where you deposit $50 into an account gaining 5% interest for 3 years. Assume monthly deposits. Write out the formula first to show your work.
You would like to have $6,000.00 in 11 years for a special vacation following graduation by making deposits at the end of each quarter in an annuity that pays 5.7% compounded quarterly. How much money should you deposit at the end of every quarter? calculations. Round to the nearest penny and use rounded values for all future How much of the $6,000.00 comes from deposits and how much comes from interest? of the $6,000.00 comes from your deposits and $ comes from interest.
Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,798 is deposited into this annuity every month, how much is in the account after 8 years? How much of this is interest? Type the amount in the account: $212590.28 (Round to the nearest dollar.) Type the amount of interest earned: $39982.28 (Round to the nearest dollar)
A bank pays 6% interest compounded semiannually. Use appropriate formula to find out how much should be deposited in $ now to yield an annuity payment of $900 at the beginning of each 6 months for 12 years
Construct an annuity table showing the deposits, interests, and balances for the saving plan below (compulsory to show the working steps to get the interest value): a) $350 is invested in an increasing annuity at the end of every 6 months for 3 years. The account pays 10.25% interest rate compounded semiannually. Period Beginning Interest Deposit Ending balance (Every 6 months) Balance 1 $0.00 $0.00 $350.00 $350.00 3 4 (Copy this table to your answer script)
a personal account earmarked as a retirement supplement contains 242,400. suppose 200,000 is used to establish an annuity that earns 6% compounded quarterly and pays 4,500 at the end of each quarter. How long until the account balance is zero?
Answer the subquestions below: a. Mr. Formento pays at the end of every month for a loan that charges 5% interest compounded quarterly. What type of annuity certain is this? b. Determine the amount after 5 years of a P1,500 deposit every end of 3 months in an account paying 12% compounded quarterly. c. how much should be invested at the end of every six months at 12%compounded quarterly in order to accumulate P50,000 after 6 years?
Assume that you make monthly payments of $625 into an ordinary annuity paying 4% compounded monthly. How much will be in the account after 9 years? Amount=
a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic Deposit Rate $2000 at the end of every three months 6.25% compounded quarterly Click the icon to view home finance formulas. Time 6 years
You make semiannual deposits of $584.00 into an ordinary annuity earning 5.07% compounded semiannually. How much money is in the account after 8 years? $11349.11 How much interest did you earn in your first year? $6677.11 Note: Your answers are a dollar amount and should include a dollar sign
a. Use the appropriate formula to find the value of the annuity b.how much of the financial goal comes from deposit and how much comes from interest? periodic deposit-$? at the end of the month Rate-5% compounded monthly Time-16 years Financial goal-$140,000
A bank pays 6% interest, compounded semiannually. Use the appropriate formula to find how much should be deposited (in $) now to yield an annuity payment of $300 at the beginning of each six months, for 12 years. (Round your answer to the nearest cent.)

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