Question 1

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to
the nearest cent.
-Annual payments with 3.1% interest compounded annually for 9 years.to accumulate $4400
A) $103.63
B) $382.05
C) $431.35
D) $493.05

Accepted Answer

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Question 2

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to
the nearest cent.
-Annual payments with 8% interest compounded annually for 9 years to accumulate $5700
A) $393.47
B) $535.88
C) $228.11
D) $456.45

Accepted Answer

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Question 3

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to
the nearest cent.
-Annual payments with 6.5% interest compounded annually for 23 years to accumulate$4000
A) $73.59
B) $61.08
C) $86.76
D) $79.84

Accepted Answer

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Question 4

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$100 invested annually for 8 years at 9% interest compounded annually
A) $2213.96
B) $203.12
C) $1102.85
D) $920.04

Accepted Answer

The formula for the future value of an ordinary annuity is $A = P \frac{(1 + r)^n - 1}{r}$, where $A$ is the future value of the annuity, $P$ is the payment amount per period, $r$ is the interest rate per period, and $n$ is the number of periods. Plugging in the given values: $A = 100 \frac{(1 + 0.09)^8 - 1}{0.09}$, which calculates to approximately $1102.85.

Question 5

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$125 is invested monthly for 8 years at 8% compounded monthly
A) $16,733.57
B) $17,133.59
C) $17,433.69
D) $17,333.70

Accepted Answer

The correct answer is A. $16,733.57.The ordinary annuity formula is:A = P * ((1 + r/n)^(n*t) - 1) / (r/n)where:A is the accumulated amountP is the monthly paymentr is the annual interest raten is the number of times per year that the interest is compoundedt is the number of yearsIn this case, we have:P = $125r = 8% = 0.08n = 12 (monthly)t = 8Plugging these values into the formula, we get:A = 125 * ((1 + 0.08/12)^(12*8) - 1) / (0.08/12)= 125 * ((1.006666667)^96 - 1) / (0.006666667)= 125 * (1.898299016 - 1) / 0.006666667= 125 * 0.898299016 / 0.006666667= 16,733.5679Rounding to the nearest cent, we get $16,733.57.

Question 6

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$150 is invested quarterly for 8 years at 8% compounded quarterly
A) $7034.07
B) $7334.17
C) $6634.05
D) $12,634.18

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Question 7

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to
the nearest cent.
-Quarterly payments with 7.3% interest compounded quarterly for 5 years to accumulate $85,000
A) $424.72
B) $3559.70
C) $1413.02
D) $393.99

Accepted Answer

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Question 8

Solve the problem. Round to the nearest cent.
-Sandra deposits $3000 in an ordinary annuity at the end of each semiannual period at 3% interest Compounded semiannually. Find the amount she will have on deposit after 12 years.
A) $85,900.56
B) $78,675.43
C) $82,900.56
D) $43,853.37

Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: FV = P * [(1 + r)^nt - 1] / r, where P is the payment amount, r is the interest rate per period, n is the number of periods per year, and t is the number of years. Here, P = $3000, r = 0.03/2 = 0.015, n = 2, and t = 12. Plugging these values into the formula gives the future value closest to $85,900.56.

Question 9

Solve the problem.
-A borrower uses an income tax refund to make a partial payment on a personal simple-interest loan. Which rules or methods can be used to compute the new balance?

Accepted Answer

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-A borrower uses an income...

Question 10

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$1700 is invested semiannually for 4 years at 4.3% compounded semiannually
A) $31,665.24
B) $14,668.61
C) $54,203.49
D) $61,537.80

Accepted Answer

The formula for the future value of an ordinary annuity is $A = P \frac{(1 + r)^n - 1}{r}$, where $A$ is the future value of the annuity, $P$ is the payment amount per period, $r$ is the interest rate per period, and $n$ is the total number of payments. Given that $1700 is invested semiannually for 4 years at an annual interest rate of 4.3% compounded semiannually, we calculate $r = 0.043/2 = 0.0215$ and $n = 4 \times 2 = 8$. Plugging these values into the formula gives $A = 1700 \frac{(1 + 0.0215)^8 - 1}{0.0215}$, which calculates to approximately $14,668.61.

Question 11

Solve the problem. Round to the nearest cent.
-Bob deposits $5000 at the end of each year in an ordinary annuity paying 3% interest compounded Annually. Find the amount he will have on deposit after 12 years.
A) $64,038.98
B) $70,960.15
C) $78,088.95
D) $65,960.15

Accepted Answer

The future value of an ordinary annuity can be calculated using the formula: FV = P * [(1 + r)^n - 1] / r, where P is the annual payment, r is the interest rate, and n is the number of years. Plugging in the values: FV = 5000 * [(1 + 0.03)^12 - 1] / 0.03 = $70,960.15.

Question 12

Solve the problem.
-Under what circumstances is the average daily balance method a more favorable method to the borrower than the previous balance method? Explain.

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-Under what circumstances is the...

Question 13

Solve the problem.
-Which of the following rules, methods, or formulas might require you to use an APR table: Actuarial method, average daily balance method, bankerʹs rule, compound interest Formula, percent change formula, rule of 78s, simple interest formula, United States rule, Previous balance method.

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-Which of the following rules,...

Question 14

Solve the problem. Round to the nearest cent.
-Green Thumb Landscaping wants to build a $140,000 greenhouse in 2 years. The company sets up A sinking fund with payments made quarterly. Find the payment into this fund if the money earns 8% interest compounded quarterly.
A) $10,438.34
B) $16,311.37
C) $7511.02
D) $33,967.33

Accepted Answer

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Question 15

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$5000 is invested annually for 9 years at 4.6% compounded annually
A) $54,232.95
B) $53,732.95
C) $53,232.95
D) $55,232.95

Accepted Answer

The ordinary annuity formula is used to calculate the future value of a series of equal payments at regular intervals. Using the formula $ FV = P \times \frac{(1 + r)^n - 1}{r} $, where $ P = 5000 $, $ r = 0.046 $, and $ n = 9 $, the accumulated amount is approximately $54,232.95.

Question 16

Solve the problem. Round to the nearest cent.
-Mary needs $9000 in 6 years. What amount can she deposit in a sinking fund at the end of each Quarter at 5% interest compounded quarterly so she will have her $9000?
A) $1323.16
B) $308.90
C) $323.88
D) $340.17

Accepted Answer

To find the amount Mary needs to deposit each quarter, we use the formula for the future value of an ordinary annuity: FV = Pmt * [(1 + r)^nt - 1] / r. Here, FV = $9000, r = 0.05/4 = 0.0125, n = 4 quarters per year, t = 6 years. Solving for Pmt gives approximately $323.88.

Question 17

Solve the problem. Round to the nearest cent.
-To start a new business, Eric invests $765.13 each month in an ordinary annuity paying 7% interest Compounded monthly. Find the amount in the annuity after 5 years.
A) $25,005.41
B) $54,777.88
C) $55,543.01
D) $54,012.75

Accepted Answer

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Question 18

Solve the problem. Round to the nearest cent.
-James has set up an ordinary annuity to save for his retirement in 19 years. If his monthly Payments are $200 and the annuity has an annual interest rate of 7.5% compounded monthly, What will be the value of the annuity when he retires?
A) $104,462.72
B) $100,462.72
C) $75,347.04
D) $86,397.94

Accepted Answer

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Question 19

Solve the problem. Round to the nearest cent.
-Joan wants to have $250,000 when she retires in 25 years. How much should she invest annually in Her annuity to do this if the interest is 7% compounded annually?
A) $7010.57
B) $3000.71
C) $3952.63
D) $8998.99

Accepted Answer

To find the annual investment, use the future value of an annuity formula: FV = Pmt * [(1 + r)^n - 1] / r. Here, FV = $250,000, r = 0.07, n = 25. Solving for Pmt gives approximately $3952.63.

Question 20

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent.
-$1000 invested annually for 12 years at 5% interest compounded annually
A) $3420.68
B) $35,917.13
C) $15,917.13
D) $14,206.79

Accepted Answer

The formula for the future value of an ordinary annuity is $A = P \frac{(1 + r)^n - 1}{r}$, where $A$ is the future value of the annuity, $P$ is the annual payment, $r$ is the annual interest rate (in decimal form), and $n$ is the number of payments. Plugging in the given values: $A = 1000 \frac{(1 + 0.05)^{12} - 1}{0.05}$, calculating this gives approximately $15,917.13.

Quiz 10: Consumer Mathematics

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to the nearest cent. -Annual payments with 3.1% interest compounded annually for 9 years.to accumulate $4400

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to the nearest cent. -Annual payments with 8% interest compounded annually for 9 years to accumulate $5700

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to the nearest cent. -Annual payments with 6.5% interest compounded annually for 23 years to accumulate$4000

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. -$100 invested annually for 8 years at 9% interest compounded annually

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. -$125 is invested monthly for 8 years at 8% compounded monthly

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. -$150 is invested quarterly for 8 years at 8% compounded quarterly

Use the sinking fund formula to determine the payment needed to reach the accumulated amount. Round the answer to the nearest cent. -Quarterly payments with 7.3% interest compounded quarterly for 5 years to accumulate $85,000

Solve the problem. Round to the nearest cent. -Sandra deposits $3000 in an ordinary annuity at the end of each semiannual period at 3% interest Compounded semiannually. Find the amount she will have on deposit after 12 years.

Solve the problem. -A borrower uses an income tax refund to make a partial payment on a personal simple-interest loan. Which rules or methods can be used to compute the new balance?

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. -$1700 is invested semiannually for 4 years at 4.3% compounded semiannually

Solve the problem. Round to the nearest cent. -Bob deposits $5000 at the end of each year in an ordinary annuity paying 3% interest compounded Annually. Find the amount he will have on deposit after 12 years.

Solve the problem. -Under what circumstances is the average daily balance method a more favorable method to the borrower than the previous balance method? Explain.

Solve the problem. Round to the nearest cent. -Green Thumb Landscaping wants to build a $140,000 greenhouse in 2 years. The company sets up A sinking fund with payments made quarterly. Find the payment into this fund if the money earns 8% interest compounded quarterly.

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. -$5000 is invested annually for 9 years at 4.6% compounded annually

Solve the problem. Round to the nearest cent. -Mary needs $9000 in 6 years. What amount can she deposit in a sinking fund at the end of each Quarter at 5% interest compounded quarterly so she will have her $9000?

Solve the problem. Round to the nearest cent. -To start a new business, Eric invests $765.13 each month in an ordinary annuity paying 7% interest Compounded monthly. Find the amount in the annuity after 5 years.

Solve the problem. Round to the nearest cent. -James has set up an ordinary annuity to save for his retirement in 19 years. If his monthly Payments are $200 and the annuity has an annual interest rate of 7.5% compounded monthly, What will be the value of the annuity when he retires?

Solve the problem. Round to the nearest cent. -Joan wants to have $250,000 when she retires in 25 years. How much should she invest annually in Her annuity to do this if the interest is 7% compounded annually?

Use the ordinary annuity formula to determine the accumulated amount in the annuity. Round the answer to the nearest cent. -$1000 invested annually for 12 years at 5% interest compounded annually