Question
1.Given annual effective interest rate 4%, find: (a) Present value of an annuity-immediate which pays $200 every other year for twelve years. ($920.11) (b) Accumulated
1.Given annual effective interest rate 4%, find:
(a) Present value of an annuity-immediate which pays $200 every other year for twelve years. ($920.11)
(b) Accumulated value, at the end of twelve years, of an annuity-immediate which pays $200 every third year for twelve years. ($962.70)
(c) Present value of an annuity-immediate which pays $200 every quarter for twelve years. ($7,619.76)
(d) Accumulated value, at the end of twelve years, of an annuity immediate which pays $200 per month for twelve years. ($36,718.39)
2.Find the present value of a ten-year annuity which pays $400 at the beginning of each quarter for the first five years, increasing to $600 per quarter thereafter. The annual effective rate of interest is 12%. ($11,466.13)
3.$100 is invested in a fund at the beginning of every other month for eight months. The fund balance at the end of eight months is $520. Find the annual effective rate of interest. (84.77891%)
4.Duyen invests $2000 at the end of each quarter for nine years in an account having an annual effective interest rate of 4%. Find Duyen's accumulated value at the time of the last deposit. ($85,921.92)
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