Question
b) An annuity is set up where payments of $692 are made into a savings account at the end of each quarter. If interest is
b) An annuity is set up where payments of $692 are made into a savings account at the end of each quarter. If interest is 9.14% p.a. compounded annually, calculate the future value of the annuity after 9 years.
c) You have purchased a new Dodge Ram 1500 for $42 400. Your vehicle loan requires that you make end of month payments over the course of 96 months at an interest rate of 4.00% compounded quarterly. What is the amount of each payment?
d) To save for a capital investment, a company deposits $500 at the end of every month in an account that earns 4.25% compounded quarterly. After 5 years, no further deposits are made. The balance earns interest in the same account for 6 more years.
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