Ordinary General Annuities - Finding the FV

1. Mr. Nowak has contributed $169.00 at the end of each year into an RRSP paying 4% per annum compounded quarterly.

After 18 years Mr. Nowak will have $____ in the RRSP. (rounded to two decimal places)

2. Find the future value of the following ordinary annuity

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$550	6 Months	10 Years	5%	Annually

The future value is $____ (rounded to two decimal places)

3. What is the discounted value of $1538.00 paid at the end of every three months for 4 months if interest is 11% per annum compounded annually?

The discounted value is $____

4. A property was purchased for $4866.00 down and payments of $1170 at the end of every three months for 7 years. Interest is 3% per annum compounded annually.

(a) What was the purchase price of the property ? ( rounded to two decimal places )

(b) How much is the cost of financing ?

5. Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of $811.52 at the end of every year over five years. If interest is 6.2% compounded quarterly, what was the original loan balance? (rounded to two decimal places)

6. As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $11,748 now, or accept monthly payments of $188 for the next six years. If the money is placed into a trust fund earning 4.48% compounded annually, which is the better option and by how much?

Answer : The _________ option is better by $___

7. Find the present value of the following ordinary annuity.

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$2700	1 Year	7 Years	9%	Quarterly

The present value is $___ (rounded to two decimal places )

8. Harlan made equal payments at the end of each month into his RRSP. If interest in his account is 3.9% compounded annually, and the balance after eight years is $18,500, what is the size of the monthly payment?

The size of the monthly payment is $____

9. A vacation property valued at $32,000 was bought for 240 payments of $262 due at the end of every month. What nominal annual rate of interest compounded annually was charged?

The nominal annual rate of interest is ___%

10. A loan is repaid with payments of $6163 made at the end of each quarter for 5 years. If interest on the loan is 7.9%, compounded monthly, what is the initial value of the loan? Enter to the nearest cent (two decimals).

11. What payment needs to be made at the end of each year to accumulate $104201 over 10 years at 3.9% compounded monthly? Answer to two decimals. Do not use $ signs or commas.

Enter to the nearest cent (two decimals).

12. What payment needs to be made at the end of each month to accumulate $71014 over 18 years at 10.6% compounded quarterly? Answer to two decimals.

13. What payment needs to be made at the end of each year to pay off a loan of $120582 over 31 years at 15% compounded monthly? Answer to two decimals.

14. What payment needs to be made semi-annually at the end of each period to pay off a loan of $66116 over 21 years at 14.6% compounded monthly? Answer to two decimals

15. 18 deposits increasing at a constant rate of 6% are made at the end of each year. The first deposit was 2339 and fund earns 5.2% compounded annually. What is the future value of the periodic constant growth payments? Answer to two decimals

16. 12 deposits increasing at a constant rate of 1.2% are made at the end of each year. The first deposit was 8446 and fund earns 6.4% compounded annually. What is the size of the last deposit? Answer to two decimals