Question 6,14 and 24 only, with specific solution. tks
Determine whether or not each of the following situations desctibes an annuity. If the situation is not an annuity, explain why it is not. 1. A car lease requires monthly payments of $235.94 for 5 years. 2. Your cell phone bill. 3. The money Adam pays for groceries each week. 4. Ashok bought a guitar from his brother for $350. Since he didn't have the money to pay for it up front, his brother agreed that he could pay him $25 a week until his payments add up to $350. 5. Caries' Candy Counter pays $1,400 a month in rent for its retail store. The rent for the Tastee Lard Donut Shoppe is $850 a month plus 2% of the monthly sales- 7. Cheryl pays for her son's day care at the beginning of every month. Her provider charges $55 for each day her son is scheduled to be there during the month. 8. Every single morning, rain or shine, Cieran walks to his favorite coffee shop and buys a double redeye latte. 9. According to their divorce decree, Terry is required to pay his ex-wife $590 a month in child support until their daughter turns 21. 10. In response to her church's annual stewardship campaign, Penny pledged to make an offering of $20 each week. B. Present and Future Values Each of the following problems describes an annuity. Determine whether the amount indicated is the annuity's present value or future value. 11. Artie bought a policy from an insurance company that will pay him $950 a month guaranteed for the next 20 years. Is the amount he paid a present value or future value? 12. The Belcoda Municipal Electric Company expects that in 5 years' time it will need to make significant upgrades to its equipment. In order to set aside enough money to pay these expenses, the utility has begun depositing $98,000 each quarter into an investment account each expenses. Now he is making equal payments each month on those loans. Is the amount he vorce decree, Tert child support until their daughter turns 21. 10. offering of $20 each week. To response to her church's annual stewardship campaign, Penny pledged to make an B. Present and Future Values Each of the following problems describes an annuity. Determine whether the amount indicated is the annuity's present value or future value. 11. Artie bought a policy from an insurance company that will pay him $950 a month guaranteed for the next 20 years. Is the amount he paid a present value or future value? 12. The Belcoda Municipal Electric Company expects that in 5 years' time it will need to make significant upgrades to its equipment. In order to set aside enough money to pay these expenses, the utility has begun depositing $98,000 each quarter into an investment account each quarter. Is the amount they are trying to accumulate a present or future value? 13. Wyatt just attended a presentation held by the company that administers his employer's 401(k) savings plan. According to the sales rep, if he puts just $125 into the plan with each paycheck he could be a millionaire when he hits retirement age. Is the $1,000,000 projection a present or future value? Otisco County won a judgment against a former contractor that will require the contractor to pay the county $52,000 per year for the next 20 years. Instead of having to make payments for the next 20 years, the contractor offers to pay the county $835,000 in one lump sum today. Would this be a present value or future value? Fifteen years ago, Ken quit smoking, and instead of spending $30 a week on cigarettes he put that money in a special savings account each week. Is the value of his account today a present or future value? Three years ago, Len bought a new car and borrowed the entire cost. Is the cost of the car the present value of his monthly payments or the future value? borrowed the present value or the future value of his loans? Tessa was laid off from her job and was out of work for 6 months. Fom 15. 16. 17. 18. CHAPTER 4: Annuities 128 C. Ordinary Annuities and Annuities Due Each of the following problems describes an annuity. Determine whether it is an ordinary annuity or an annuity due. Justify your answer. 19. John won a lottery jackpot, which will pay him $100,000 every year for 20 years, starting right away. 20. At the end of each quarter, the Wholistic Acoustelectric Corporation pays each of its shareholders a dividend of 25 cents for each share owned. 21. Because he is self-employed, Dylan does not have income taxes withheld from paychecks. Instead, he is required to make estimated tax payments to the IRS. This year, he has to pay $1,845 each quarter. 22. Every month I pay my insurance company $78.59 for my car insurance premium. The rent for Lourdes' apartment is $845, due at the beginning of each month. 24. A customer of the Mendon Falls Gas and Electric Company pays his utility bills on a budget plan. Instead of having his bill fluctuate from month to month, he pays the utility $165 at the end of each month. 25. Jenny and Rob's monthly mortgage payment is $1,257.09. 23. D. Grab Bag For each of the following scenarios, determine whether or not the payments describe an annuity. If they do, determine whether they are an annuity due or an ordinary annuity. Also, determine whether the amount indicated is a present value or a future value. inning of
