Question
1.Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $1900/semiannual period for 7 years at 4.5%/year compounded semiannually
1.Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)
$1900/semiannual period for 7 years at 4.5%/year compounded semiannually
2.Find the present value of the ordinary annuity. (Round your answer to the nearest cent.)
$1200/semiannual period for 9 years at 5%/year compounded semiannually
3.If Jackson deposits $100 at the end of each month in a savings account earning interest at a rate of 3%/year compounded monthly, how much will he have on deposit in his savings account at the end of 4 years, assuming he makes no withdrawals during that period?
4.The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $140/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 3%/year compounded monthly, how much money will be in their travel fund at the end of the fourth year?
5.Luis has $130,000 in his retirement account at his present company. Because he is assuming a position with another company, Luis is planning to "roll over" his assets to a new account. Luis also plans to put $2000/quarter into the new account until his retirement 25 years from now. If the new account earns interest at the rate of 5.5%/year compounded quarterly, how much will Luis have in his account at the time of his retirement? Hint: Use the compound interest formula and the annuity formula.
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