Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help answer 5 questions or as much as possible with working/explanation will give thumbs up 14. How much should the monthly payment be for
please help answer 5 questions or as much as possible with working/explanation will give thumbs up
14. How much should the monthly payment be for an annuity due to have a future value of $100,000 if the interest paid out is 5% semiannually over 8 years? 15. Compute the maturity value of an annuity that pays 8% semiannually for 10 years if the periodic payment is $125 and the annuity is: (a) An ordinary annuity (b) An annuity due 16. Nick Lazar wants to save some money for his daughter's first year of college. If he purchases an ordinary annuity paying 3% yearly and makes a payment of $3000 for 5 years, how much will he save? 17. The owner of Clear Window Cleaning wants to purchase an ordinary annuity paying 6% semiannually to buy new ladders in 4 years. He estimates the cost to be $1300. Find the sinking fund payment. 18. Jeannette, owner of Jeanette's Health Club, wants to purchase an ordinary annuity to buy a new pec-deck machine in 3 years. The cost of the machine is $900. Find the sinking fund payment if the annuity pays 10% annually. 19. Leva Linn wants to remodel his game room in 2 years. He estimates the cost to be $10,000. Find the sinking fund payment if he can purchase an ordinary annuity that is paying 5% quarterly. 20. Evelyn Anthony wants to save some money for a vacation in 4 years. She decides to purchase an ordinary annuity paying 5% semiannually. If her payment is $200, find the future value of the annuity in 4 years. 21. Suppose a $1000 payment is made at the end of each quarter and the money in the account is compounded quarterly at 6.5% interest for 15 years. How much is in the account after the 15 year period? How much interest was earned over the 15 year period? 22. How much must Harry save each month in order to buy a new car for $12,000 in three years if the interest rate is 6% compounded monthly? 23. A couple is saving for their only child's college. If they deposit $50 every week into an account that earns 4.25% compounded weekly, how much will they have when their child starts college in 18 yearsStep 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