Question

16. Suppose $15,000 is invested at an annual rate of 5% for 12 years. Find the compounded amount interest is compounded as follows. a.) Annually b.) Semiannually c.) Quarterly d.) Monthly 17. Find the present value of each compounded amount: a.) $42000 in 7 years, 6% compounded monthly. b) $17,650 in 4 years, 4% compounded quarterly. c.) S 1347.89 in 3 years, 5.5% compounded semiannually. 18. Find the future value of each annuity. a.) S 1288 deposited at the end of each year for 14 years, money earns 4% compounded annually. b) $4000 deposited at the end of each quarter for 7 years; money earns 5% compounded quarterly. 19. Ashton is an athlete who feels that his playing career will last 10 years. To prepare for his future, he deposits $4,000 at the end of each year for 10 years in a account paying 7% compounded annually How mich will he have on deposit after 10 years? 20. Find the amount of each payment that must be made into a sinking fund to accumulate each amount. a) $6500; money earns 5% compounded annually for 6 years. b.) $57,000, money earns 4% compounded semiannually for 8.5 years. 21. Find the preseut value of each ordinary annuity a.) Deposits of $850 anmally for 4 years at 6S compounded annually b) Deposits of $1500 quarterly for 7 years at 5% compounded quarterly. 22. Find the amount of the payment nocessary to amortize cach loan. a) $80,000; 5% compounded annually for 9 years with annual payments b.) $3200; 8% compounded quarterly for 3 years with quarterly payments

Answer 1

16
1.
=15000*(1+5%/1)^(12*1)=26937.84489

2.
=15000*(1+5%/2)^(12*2)=27130.88924

3.
=15000*(1+5%/4)^(12*4)=27230.3228

4.
=15000*(1+5%/12)^(12*12)=27297.73311

17
1.
=42000/(1+6%/12)^(12*7)=27624.86109

2.
=17650/(1+4%/4)^(4*4)=15052.29528

3.
=1347.89/(1+5.5%/2)^(2*3)=1145.416587

18
1.
=1288/4%*(1.04^14-1)=23559.98161

2.
=4000/(5%/4)*((1+5%/4)^(4*7)-1)=133117.5372

19
=4000/7%*(1.07^10-1)=55265.79185