Annuities

1. Calculate the accumulated value of an ordinary annuity of $4,200 a year for 6 years if the money is worth 7.5%.

2. If Gabe makes a $450 deposit into his savings fund at the end of each quarter for 6 years, how much will he be able to collect at the end of the sixth year if the money is worth 6.75%?

3. If $970 must be paid to an organization at the end of each month for the next 10 years, how much money is needed now if the interest is 12%?

4. What is the current value of an annuity of $7,500 paid at the end of each half-year for 10 years in an account bearing 11.5% compounded annually?

5. Wayne wants to set up a monthly payment for his daughter, who plans to live in another state for the next four years. He deposited $40,000 for her automatic bank payments. If the bank pays 7.25% interest compounded semiannually, how much will she receive at the beginning of each month?

6.A Rosemary would like to buy a chalet overlooking the Alps for $300,000. She can save up to $10,000 a month in an account paying 15% interest compounded monthly. How long will it take her to wait?

7. A restaurant owner wants to buy new kitchen equipment for $25,000. He would like to pay for it through saving up $2,000 a week in a fund that pays 10% interest compounded monthly. How long should he wait to save the entire amount?

8.Find the current value of an annuity due of $900 each week for one and a half years at 8% interest compounded weekly.

9.If you deposit $220 in your savings account at the beginning of each month for 2 years and if your account bears 6.25 % compounded monthly, how much will you save at the end of the 2 years?

10.Find the future value of the cash flow of $600 a month for 5 years at 9% interest compounded monthly.