1) Ashley receives $3,500 at the end of every half-year for 14 yearsfor money that he loaned to a friend at 5.12% compounded semi-annually.

a.What type of annuity is this?

Ordinary simple annuity

Ordinary general annuity

Simple annuity due

General annuity due

b.How many payments are there in this annuity?

2) How much should Zachary have in a savings account that is earning 2.25% compounded semi-annually, if he plans to withdraw $1,600 from this account at the end of every six months for 7 years?

3) Zachary purchases a retirement annuity that will pay him $1,500 at the end of every six months for the first twelve years and $400 at the end of every month for the next four years. The annuity earns interest at a rate of 2.9% compounded quarterly.

a.What was the purchase price of the annuity?

b.How much interest did Zachary receive from the annuity?

4) Amanda deposited $1,500 at the end of every month into an RRSP for 6 years. The interest rate earned was 5.50% compounded semi-annually for the first 3 years and changed to 5.75% compounded monthly for the next 3 years. What was the accumulated value of the RRSP at the end of 6 years?

5) Calculate the present value of a loan that could be cleared by payments of $3,300 at the end of every 6 months for 5 years if money earns 7.89% compounded semi-annually.