Question

1- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.) $275 monthly at 5.6% to accumulate $25,000. _________yr

2- Determine the amount due on the compound interest loan. (Round your answers to the nearest cent.)

$18,000 at 3% for 15 years if the interest is compounded in the following ways.

(a) annually________

3) You have just received $155,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.2% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)
_________yr

4)In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the accumulated amount of the annuity. (Round your answer to the nearest cent.)

$1000 monthly at 5.1% for 20 years. _________

5) In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.

Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.)

$275 monthly at 5.6% to accumulate $25,000. _______yr

Answer 1

Question
1	Time taken	75.96	months
		6.33	years
2	Amount due	28043.41
3	Time taken	121.21	quarters
		30.30	years
4
	Accumulated amount	415813.49
5	Time taken	75.96	months
		6.33	years

WORKINGS