Deferred Annuity Word Problems 1. Find the future value and the present value of an annuuity of 15,000 payable at the end of every three months for 30 payments. The first payment is due at the end of seven years. The interest rate is 11% compounded quarterly. 2. Binnie Blanche purchased a dining set for 80,000 on May 13, 2017. She paid 10,000 cash and agreed to pay the balance plus interest at 9 1/2% compounded annually in 14 annual payments, with the first payment due on May 13, 2020. What is the size of each payment? 3. Bellamy borrowed 65,000 at 7% interest compounded quarterly and agreed to repay the loan in quarterly payments of 5,000 each. The first payment is due in two years. Find the number of payments. 4. If money is woth 5 1/2% compounded annually, what single payment now equivalent to 45 annual payments of 35,000 each with the first payment due in five years? Please provide solutions with explanations
Deferred
Word Problems
1. Find the
2. Binnie Blanche purchased a dining set for 80,000 on May 13, 2017. She paid 10,000 cash and agreed to pay the balance plus interest at 9 1/2% compounded annually in 14 annual payments, with the first payment due on May 13, 2020. What is the size of each payment?
3. Bellamy borrowed 65,000 at 7% interest compounded quarterly and agreed to repay the loan in quarterly payments of 5,000 each. The first payment is due in two years. Find the number of payments.
4. If money is woth 5 1/2% compounded annually, what single payment now equivalent to 45 annual payments of 35,000 each with the first payment due in five years?
Please provide solutions with explanations
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