9. -/2 pointsBerrFinMath1 2.2.001.

Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)

$13,000 at 3% for 15 years if the interest is compounded in the following ways.

(a) annually

$

(b) quarterly

$

10.-/2 pointsBerrFinMath1 2.2.003.

Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)

$28,000 after 7 years at 5% if the interest is compounded in the following ways.

(a) annually

$

(b) quarterly

$

13.-/2 pointsBerrFinMath1 2.2.008.

Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly. (Round your answers to two decimal places.)

7.7% compounded weekly.

"rule of 72" yr

exact answer yr

19.-/1 pointsBerrFinMath1 2.3.001.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

$5500 annually at 6% for 10 years.

$

20.-/1 pointsBerrFinMath1 2.3.002.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

$2000 monthly at 5.9% for 20 years.

$

21.-/1 pointsBerrFinMath1 2.3.003.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund. (Round your answer to the nearest cent.)

Monthly deposits earning 4% to accumulate $2000 after 10 years.

$

22.-/1 pointsBerrFinMath1 2.3.004.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the required payment for the sinking fund. (Round your answer to the nearest cent.)

Yearly deposits earning 12.8% to accumulate $9500 after 12 years.

$

7/3/2016 Unit 1 Homework Assignment (2.1, 2.2, 2.3, 2.4)

23.-/1 pointsBerrFinMath1 2.3.006.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.)

$225 monthly at 5.5% to accumulate $25,000.

yr

24.-/2 pointsBerrFinMath1 2.3.007.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

An individual retirement account, or IRA, earns taxdeferred

interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA

deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.2%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52)

withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.)

Joe $

Jill $

25.-/1 pointsBerrFinMath1 2.3.008.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

How much must you invest each month in a mutual fund yielding 13.8% compounded monthly to become a millionaire in 10 years? (Round your answer to the

nearest cent.)

$

26.-/1 pointsBerrFinMath1 2.3.009.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

The Oseola McCarty Scholarship Fund at the University of Southern Mississippi was established by a $140,000 gift from an 87yearold

woman who had

dropped out of sixth grade and worked for most of her life as a washerwoman. How much would she have had to save each week in a bank account earning

3.9% compounded weekly to have $140,000 after 75 years? (Round your answer to the nearest cent.)

$

27.-/1 pointsBerrFinMath1 2.3.010.

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

You and your new spouse each bring home $1400 each month after taxes and other payroll deductions. By living frugally, you intend to live on just one

paycheck and save the other in a mutual fund yielding 7.96% compounded monthly. How long will it take to have enough for a 20% down payment on a

$155,000 condo in the city? (Round your answer to two decimal places.)

yr

7/3/2016 Unit 1 Homework Assignment (2.1, 2.2, 2.3, 2.4)

28.-/1 pointsBerrFinMath1 2.4.002.

Calculate the present value of the annuity. (Round your answer to the nearest cent.)

$1200 monthly at 6.2% for 30 years.

$

29.-/1 pointsBerrFinMath1 2.4.003.

Determine the payment to amortize the debt. (Round your answer to the nearest cent.)

Monthly payments on $120,000 at 3% for 25 years.

$

30.-/1 pointsBerrFinMath1 2.4.004.

Determine the payment to amortize the debt. (Round your answer to the nearest cent.)

Quarterly payments on $18,500 at 3.6% for 6 years.

$

31.-/1 pointsBerrFinMath1 2.4.005.

Find the unpaid balance on the debt. (Round your answer to the nearest cent.)

After 6 years of monthly payments on $140,000 at 3% for 25 years.

$

32.-/1 pointsBerrFinMath1 2.4.007.

The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 25 years. If the prize money is guaranteed by

AAA bonds yielding 6% and is placed into an escrow account when the contest is announced 1 year before the first payment, how much do the contest sponsors

have to deposit in the escrow account? (Round your answer to the nearest cent.)

$

7/3/2016 Unit 1 Homework Assignment (2.1, 2.2, 2.3, 2.4)

33.-/2 pointsBerrFinMath1 2.4.009.

Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $39,000, so he figures he should get

enough insurance to provide his wife and new baby with that amount each year for the next 35 years. If the longterm

interest rate is 6.7%, what is the

present value of John's future annual earnings? (Round your answer to the nearest cent.)

$

Rounding up to the next $50,000, how much life insurance should he buy? (Round your original answer to the nearest $50,000.)

$

34.-/1 pointsBerrFinMath1 2.4.010.

A MasterCard statement shows a balance of $570 at 13.8% compounded monthly. What monthly payment will pay off this debt in 1 year 8 months? (Round

your answer to the nearest cent.)

$