Suppose a loan of a-, is to be amortized by periodic payments of 1 for n periods and interest rate i per period. Let t

2. The accumulated value of a saving account based on regular periodic payments can be determined by the annuity due equation P A =[(1 + r)" – 1] A person at the age of 25 start saving RM1000 per month. This person aims to save RM500 000 in 20 years. Approximate the interest rate that would enable him/her to reach that goal in 20 years. Where A = amount in the account at any time , for example at the end of 20 years A=500 000 P = is the amount regularly deposited (monthly deposit) r= rate of interest ( if the bank gives rate of interest 7% per annum, then r=: 0.07 12 n = number of deposits (the number of month) You may take ro = 6.5% or 0.065 per annum Give your answer accurate to 104

2. Find the rate of interest i such that a 20-year annuity with payments at the end of each year has the accumulated value which is exactly three times as much as the accumulated value of a 10-year annuity with payments at the end of each year.

Calculate the interest of 10,000 dinars, investing at an interest rate of 6% annually. If the investment period is 4 years and 9 months, 150 days? 309‪6-13096.57-2310‪0-3None of the aforementioned-4

3. A loan of KD 20000 is to be repaid in semi-annual payments over a period of ten years. The value of each payment during the first three years is twice the value of the payment during the last 7 years. The interest rate is 12% compounded continuously for the first 4 years, and 8% compounded semiannually for the last six years. Calculate: a) Values of the payments for the first 3 years and the last 7 b) The remaining balance after making the 10th payment. years.

Payments are deposited in a fund at the beginning of each month for 4 years. The monthly deposit in year n is 20n for n=1,2,3,4. Interest rate earned is 12% nominal interest compounded monthly.Compute the value of the fund at the end of 4 years.

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The annuity will run out of funds after approximately 13 years 10 months. (b) Show that a continuous annuity with withdrawal rate N = $5000/year and interest rate r = 8%, funded by an initial deposit of P0 = $75,000, never runs out of money.

Find the amount accumulated FV in the given annuity account. HINT [See Quick Example 1 and Example 1.] (Assume end-of-period deposits and compounding at the same intervals as deposits.) Step 1 Note that this question asks us to find the amount accumulated in an annuity with an initial investment. To find the future value of the account, we will find the future value of the $15,000 and the future value of the monthly deposits separately and then find the sum of the two amounts. Let's begin by finding the future value of the initial $15,000. Recall that the future value FV of an investment of PV dollars earning compound interest at a rate of i per compounding period for n periods is FV = PV(1 + i)". $180 deposited monthly for 20 years at 3% per year in an account containing $15,000 at the start Given that $15,000 was the initial investment, PV = 15000 If the annual interest rate of 3% per year as a decimal is 0.03, then the monthly interest rate is i = 12 Step 2 We determined that PV =…

A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as long as necessary. If the fund earns an nominal rate of interest of 8% compounded yearly, find how many regular deposits will be necessary and the size of the smaller deposit to be made on the last regular deposit, if any.