Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Computing Annuity Amounts Under Different Situations Answer the questions to the following four separate scenarios. For #1 to #3, round your answer to the nearest
Computing Annuity Amounts Under Different Situations
Answer the questions to the following four separate scenarios.
- For #1 to #3, round your answer to the nearest whole dollar.
- For #4 and #5, enter the percent rounded to two digits after the decimal; enter 2.04 for 2.044% or 2.05 for 2.045%.
- Do not use a negative sign with your answer.
1. Julie has $50,000 in a fund that earns 10% annual compound interest. | Answer
| |
If she desires to withdraw it in five equal annual amounts, starting today | ||
(at beginning of period), how much would she receive each year? | ||
2. Jules deposits $500 each semiannual period starting today (at beginning of period); | Answer
| |
this account earns 3% (annual rate). What is the balance in the account at the end of year 10? | ||
3. Jill purchases a new automobile that cost $28,000. She receives a $8,000 trade-in | Answer
| |
allowance for her old auto and signs a $20,000 note with a market rate of 8%. The note requires | ||
eight equal quarterly payments starting at the end of the first quarter from date of purchase. | ||
What is the amount of each payment? | ||
4. June deposits $4,000 at the end of each year in an investment account for five years at | Answer
| |
compound interest. The fund has a balance of $24,912 at the date of the last deposit. | ||
What rate of interest did she earn? | ||
5. On January 1, Jin owed a debt of $30,260. An agreement was reached that she would pay the debt plus | Answer
| |
compound interest in 24 monthly installments of $1,400, the first payment to be made at the end of | ||
January. What rate of annual interest is she paying? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started