Annuities Answers

Suppose that a family wants to start a college fund for their child. If they can get a rate of 7.5%, compounded monthly, and want the fund to have a value of $75,000 after 18 years, how much should they deposit monthly? Assume an ordinary annuity and round to the nearest cent.a.$164.98b.$165.30c.$166.21d.$167.52

You put $300 at the end of each month in an investment plan that pays 7% interest, compounded monthly. How much will you have after 18 years? Round all answers to the nearest cent, when applicable.a.$129,201.10b.$129,211.25c.$129,216.31d.$129,218.51

David has a bank account which pays interest at the rate of 1.5% per year, compounded annually. Determine what amount David must have in the bank, given that he would like to draw an annual salary of $32,635.15 from his account at the end of each year for 30 years. Round to the nearest cent.a.$783,760.48b.$979,054.50c.$1,225,080.50d.$795,516.88

If an account is increasing at a rate of 3.3% compounded semiannually, what is the exact value of i in the following present value ordinary annuity formula? a. 3.3 b. c. d. Please select the best answer from the choices provided

An account paying 3.2% interest compounded semiannually has a balance of $32,675.12. Determine the amount that can be withdrawn from the account semiannually for 5 years. Assume ordinary annuity and round to the nearest cent.a.$3,505.80b.$3,561.90c.$3,039.09d.$2,991.23

For the last 20 years, Terry has made regular quarterly payments in the amount of $308 into an account paying 1.5% compounded quarterly. If, at the end of the 20 year period, Terry stops making deposits, transfers the balance to an account paying 5.5% interest compounded annually, and withdraws a annual salary from the account, determine the amount that he will receive every year for 10 years. Round to the nearest cent.a.$28,672.88b.$3,803.97c.$28,780.40d.$3,074.66

The following table list two investment plans, A and B. Given this information, determine which investment is an ordinary annuity and the future value of the ordinary annuity after one year, given that both investments, A and B, compound interest monthly at the rate of 3.5%. Round to the nearest cent. a. Investment A is an ordinary annuity with $3,918.03 in the account after 1 year. b. Investment B is an ordinary annuity with $3,918.03 in the account after 1 year. c. Investment A is an ordinary annuity with $3,906.64 in the account after 1 year. d. Investment B is an ordinary annuity with $3,906.64 in the account after 1 year Please select the best answer from the choices provided

If an account is increasing at a rate of 2.1% compounded monthly, what is the exact value of i in the following future value ordinary annuity formula? a. 2.1 b. c. d. Please select the best answer from the choices provided

You plan on making a $235.15 monthly deposit into an account that pays 3.2% interest, compounded monthly, for 20 years. At the end of this period, you plan on withdrawing regular monthly payments. Determine the amount that you can withdraw each month for 10 years, if you plan on not having anything in the account at the end of the 10 year period and no future deposits are made to the account.a.$769.27b.$767.23c.$78,910.41d.$79,120.84

Sandra deposits $3,000 at the end of each semiannual period for 12 years at 10% interest compounded semiannually. Determine the amount she will have in the account after 12 years. Round to the nearest cent.a.$133,506.00b.$140,181.30c.$121,291.43d.$70,568.14