Question 1

If $30,000 is used to purchase an annuity consisting of equal payments at the end of each quarter for the next 5 years and the interest rate is 8% compounded quarterly,find the amount of each payment.

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Question 2

What is the present value of an annuity of $300 per quarter for five years at an interest rate of 4.5% compounded quarterly?

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Question 3

Find the amount of an annuity consisting of payments of $100 paid at the end of each quarter for five years at the rate of 5% compounded quarterly.Also find the compound interest.

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Question 4

After putting $20,000 down on a piece of property,a man began paying $500 a month for ten years.Given an interest rate of 8% compounded monthly,how much would the property cost if the man had paid for it in cash?

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Question 5

Given an interest rate of 7.25% compounded monthly,find the present value of the following annuity: $700 at the end of each month for three years and $900 at the end of each month for five more years.

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Question 6

If $12,000 is used to purchase an annuity consisting of equal payments at the end of every six months for the next 7 years and the interest rate is 6.2% compounded semiannually,find the amount of each payment.

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Question 7

What is the present value of an annuity of $1000 per month for ten years at an interest rate of 6.3% compounded monthly?

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Question 8

Given a payment of $800 per quarter for five years,use a graphing calculator to graph the present value A as a function of the interest rate per quarter r.Determine the nominal interest rate if the present value of the annuity is $14,000.

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Question 9

The premiums on an insurance policy are $20 a month,payable at the beginning of each month.If the policy holder wishes to pay 1 year's premiums in advance,how much should be paid provided that the interest rate is 5.1% compounded monthly?

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Question 10

The premiums on an insurance policy are $80 every six months,payable at the beginning of each six-month period.If the policy holder wishes to pay 1 year's premiums in advance,how much should be paid provided that the interest rate is 4.3% compounded semiannually?

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Question 11

If $5000 is used to purchase an annuity consisting of equal payments at the end of each month for the next  
and the interest rate is 6% compounded monthly,find the amount of each payment.

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Question 12

If $25,000 is used to purchase an annuity consisting of equal payments at the end of each year for the next 8 years and the interest rate is 5% compounded annually,find the amount of each payment.

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Question 13

Suppose a woman purchases a building with an initial down payment of $40,000,and then makes monthly payments: $1500 at the end of each month for four years and $2000 at the end of each month for six more years.Given an interest rate of 5.5% compounded monthly,find the present value of the payments and the list price of the building.(Round your answer to the nearest dollar.)

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Question 14

Given an annuity with equal payments at the end of each month for six years and an interest rate of 5.3% compounded monthly,use a graphing calculator to graph the present value A as a function of the monthly payment R.Determine the monthly payment if the present value of the annuity is $30,000.

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Question 15

Given an interest rate of 4.6% compounded semiannually,find the present value of the following annuity: $2100 at the end of every six months for six years and $3000 at the end of every six months for four more years.

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Question 16

A company repays a $40,000 loan by paying 20% of the outstanding loan every four months for five years and then pays off the rest.How much was the company's final payment?

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Question 17

Suppose you deposit $200 at the end of every month into a bank account that pays 6% compounded monthly.After six years,how much will you have?

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Question 18

A woman makes house payments of $4200 at the beginning of every quarter.If the woman wishes to pay  
worth of payments in advance,how much should she pay provided that the interest rate is 5.4% compounded quarterly?

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Question 19

After putting $10,000 down on a piece of property,a woman began paying $2500 a quarter for nine years.Given an interest rate of 7.75% compounded quarterly,how much would the property cost if the woman had paid for it in cash?

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Question 20

Suppose Lena deposits $500 at the end of every month into a bank account that pays 5.4% compounded monthly.After five years,how much will she have?

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Quiz 6: Mathematics of Finance