Question 1

Your client will retire this year. Currently she has $560,000 in accumulated capital. She wants to invest this capital to provide equal payments at the end of each year for 20 years, at which time the capital will be fully depleted. If her capital earns 7.5% compounded annually, what annual payment will she receive? Taken from CIFP course materials.

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Question 2

Calculate the periodic payment for the following ordinary annuity.

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Question 3

Calculate the periodic payment for the following ordinary annuity.

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Question 4

What quarterly payment is required to accumulate to a future value amount of $10,000 in eight years if money earns 4.5% compounded quarterly?

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Question 5

Rentown advertised a computer system at a cash price of $1699 and at a rent-to-own rate of $129 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to acquire the computer in a rent-to-own transaction?

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Question 6

Calculate the periodic payment for the following ordinary annuity.

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Question 7

Calculate the periodic payment for the following ordinary annuity.

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Question 8

Calculate the periodic payment for the following ordinary annuity.

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Question 9

Calculate the periodic payment for the following ordinary annuity.

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Question 10

Calculate the periodic payment for the following ordinary annuity.

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Question 11

Calculate the periodic payment for the following ordinary annuity.

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Question 12

The interest rate on a four-year $10,000 loan to purchase a car is 7.2% compounded monthly. What is the amount of the monthly payment? Reference: CIFP course on Personal Financial Planning.

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Question 13

Calculate the periodic payment for the following ordinary annuity.

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Question 14

Calculate the periodic payment for the following ordinary annuity, using the financial calculator.

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Question 15

Calculate the periodic payment for the following ordinary annuity.

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Question 16

What monthly payment is required to accumulate to a future value amount of $5,000 in four years if money earns 3.75% compounded monthly?

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Question 17

An RRSP is now worth $223,000 after contributions of $2500 at the beginning of every six months for 16 years. What effective rate of return has the plan earned?

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Question 18

What semi-annual payment would be required to pay off a loan of $5,000 at 8.5% compounded semi-annually over five years?

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Question 19

CompuLease leases computers and peripheral equipment to businesses. What lease payments must CompuLease charge at the beginning of each quarter of a five-year lease if it is to recover the $20,000 capital cost of a system and earn 12% compounded quarterly on its investment?

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Question 20

Calculate the periodic payment for the following ordinary annuity, using the financial calculator.

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Quiz 11: Annuities: Periodic Payment, Number of Payments, and Interest Rate

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity.

What quarterly payment is required to accumulate to a future value amount of $10,000 in eight years if money earns 4.5% compounded quarterly?

Rentown advertised a computer system at a cash price of $1699 and at a rent-to-own rate of $129 at the beginning of each month for 24 months. What effective rate of interest is a customer paying to acquire the computer in a rent-to-own transaction?

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity.

The interest rate on a four-year $10,000 loan to purchase a car is 7.2% compounded monthly. What is the amount of the monthly payment? Reference: CIFP course on Personal Financial Planning.

Calculate the periodic payment for the following ordinary annuity.

Calculate the periodic payment for the following ordinary annuity, using the financial calculator.

Calculate the periodic payment for the following ordinary annuity.

What monthly payment is required to accumulate to a future value amount of $5,000 in four years if money earns 3.75% compounded monthly?

An RRSP is now worth $223,000 after contributions of $2500 at the beginning of every six months for 16 years. What effective rate of return has the plan earned?

What semi-annual payment would be required to pay off a loan of $5,000 at 8.5% compounded semi-annually over five years?

CompuLease leases computers and peripheral equipment to businesses. What lease payments must CompuLease charge at the beginning of each quarter of a five-year lease if it is to recover the $20,000 capital cost of a system and earn 12% compounded quarterly on its investment?

Calculate the periodic payment for the following ordinary annuity, using the financial calculator.