1) How much interest is included in the future value of an ordinary simple annuity of $1,700 paid every six months at

10% compounded semi-annually if the term of the annuity is 8 years?

2) Cam saved $250 each month for the last three years while he was working. Since he has now gone back to school, his income is lower and he cannot continue to save this amount during the time he is studying. He plans to continue with his studies for two years and not withdraw any money from his savings account. Money is worth 3.3%

compounded monthly.

(a) How much will Cam have in total in his savings account when he finishes his studies?

(b) How much did he contribute?

(c) How much will be interest?

3) To purchase a specialty guitar for his band, for the last threeyears JJ Morrison has made payments of $84

at the end of each month into a savings account earning interest at 4.81% compounded monthly. If he leaves the accumulated money in the savings account for another twoyears at 5.56% compounded quarterly, how much will he have saved to buy the guitar?

4) Find the present value of an annuity with payments of $2,500 at the end of each year for 4 years. The interest rate is

10% compounded annually.

5) Jie purchased a computer priced at $850.37, financing it by paying $77.92 on the date of purchase, and signing a contract to pay equal monthly payments over the next fifteen months. If the terms of the contract state that interest is calculated at 9.4% compounded monthly, how much does Jie have to pay at the end of each month?