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1. Classify each of the following annuities by the date of payment and conversion period: a. Regular contributions of $200 are made at the end
1. Classify each of the following annuities by the date of payment and conversion period: a. Regular contributions of $200 are made at the end of each month for five years into a savings account earning interest at 4% compounded quarterly. b. You start to save for a major purchase. You can invest $329 every three months starting today for 5 years and 9 months. You are able to earn 5.87% compounded semi-annually. c. Monthly payments of $100.00 made at the end of each month for ten years earning interest at 12% p.a. compounded monthly. d. Steve deposited $600.00 in a trust account on the day of his son's birth and every three months thereafter in order to plan and pay for his son's higher education. If interest paid is 7.2% compounded quarterly. c. A dealer sold a car to Kristy for $2000 down and monthly payments of $259.50 for 3.5 years, including interest at 7.5% compounded annually. f. Sofia plans to save for next two years. She plans to put away $1000 every 6 months starting 6 months from now and her savings accounts cams at a rate of 8% compounded semi- annually. g. A lease requires payments of $1200.00 at the beginning of every quarter for ten years. If interest is 6% compounded monthly. h. A vacation property was bought by making semi-annual payments of $7500.00 for seven years. If the first payment is due on the date of purchase and interest is 6% p.a. compounded quarterly. i. Payments of $500.00 are made at the beginning of each month for four years. The interest rate is 4.5% compounded monthly. j. The loan will have a term of 54 months and monthly payments of $385.13. The interest rate on the loan is 8.84% compounded quarterly
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