solve question 5 asap with explanation Types of Annuities 1)ldentify the type of annuity and calculate the number of payments during the term: a. Karl pays $280.00 for a lease atthe beginning of every month for 3 years and 6 months at 7% compounded annually. b. Aida pays $1,000 at the end of every three months for5 years and 9 months towards her student loan. At 4.5% compounded quarterly. c. Kapil receives $1,500 at the end of every month for 15years from a retirement fund at 4% compounded semi-annually. Future Value Ordinary Simple 2)Suppose you open an account into which youdeposit $200 at the end of each month for 10 years. If the account pays 7.5% compounded monthly, how much will be in the account at theend of the 10 year period? 3)An annuity is created by depositing $4,500 at the end of each quarter for 12 years at an interest rate of 4.75%quarterly. What is the value of the annuity at the end of the 12 years and how much of the value is interest? 4)How much money should be inan account if it earns 5.25% compounded monthly and deposits of $75 are made at the end of each month for 4 years and 6 months? Howmuch of the value of the account can be attributed to the interest earned? 5) You want have $12,000 at the end of 6 years for the downpayment on a house. If you can invest your money at 3.25% compounded month, what payment would have have to make into the account atthe end of each month for the 6 years? Present Value of Ordinary Simple 6)What is the present value of an annuity if the payments of $800are made at the end of each quarter for 6 years and the investment earns 4.80% compounded quarterly?

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much of the value of the account can be attributed to the interest earned? 5)You want have $12,000 at the end of 6 years for the down payment on a house. If you can invest your money at 3.25% compounded month, what payment would have have to make into the account at the end of each month for the 6 years? Present Value of Ordinary Simple 6)What is the present value of an annuity if the payments of $800 L0004

much of the value of the account can be attributed to the interest earned? 5)You want have $12,000 at the end of 6 years for the down payment on a house. If you can invest your money at 3.25% compounded month, what payment would have have to make into the account at the end of each month for the 6 years? Present Value of Ordinary Simple 6)What is the present value of an annuity if the payments of $800 L0004

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 9FPE: Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five...

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Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
Anika pays $305.20 for a car lease at the beginning of every month for 2 years and 8 months at 4.76% compounded monthly. a. What type of annuity is this? Ordinary simple annuity Ordinary general annuity Simple annuity due General annuity due b. How many payments are there in this annuity?
If $417.00 is deposited at the end of each year for 6 years into an ordinary annuity earning 4.08% interest compound semiannually, construct a balance sheet showing the interest earning during each year and the balance at the end of each year. Assume this annuity rounds the interest and balance to the nearest penny at the end of each year.
Find the monthly house payments necessary to amortize the following loan. What are the total payments and total amount of interest paid. 196,000 at 6.89% for 25 years
Find i (the rate per period) and n (the number of periods) for the following annuity. Quarterly deposits of $500 are made for 6 years into an annuity that pays 7.5% compounded quarterly. Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $3,100 are made for 15 years into an annuity that pays 5.9% compunded semiannually.
Find i (the rate per period) and n (the number of periods) for the following annuity. Semiannual deposits of $3,200 are made for 99 years into an annuity that pays 7.5% compounded semiannually.
Ruth bought an insurance for 66,000 at 6% to receive an annuity for 16 years. Find the specified amount for each condition. (A) Monthly payments with interest rate compounded semiannually; (B) Payments at the beginning of each 6 months with interest rate compounded quarterly
Elizabeth pays $294.50 for a car lease at the beginning of every month for 1 years and 8 months at 4.58% compounded monthly. a. What type of annuity is this? Ordinary simple annuity Ordinary general annuity Simple annuity due General annuity due b. How many payments are there in this annuity? While buying a new car, Elizabeth made a down payment of $700 and agreed to make month-end payments of $250 for the next 4 years and 5 months. She was charged an interest rate of 3% compounded semi-annually for the entire term. a. What was the purchase price of the car? Round to the nearest cent b. What was the total amount of interest paid over the term?
Find the amount of the ordinary annuity based on the information given. R=$12,500, 8% interest compounded semiannually for 6 years The amount of the ordinary annuity is $ (Round to the nearest dollar as needed.)
a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic Deposit $90 at the end of every six months Rate Time 4.5% compounded semiannually 35 years
Matthew received a loan of $31,000 at 4.75% compounded quarterly. She had to make payments at the end of every quarter for a period of 7 years to settle the loan. a. Calculate the size of payments. Round to the nearest cent b. Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places. 0.00 Payment Number 0 1 2 Payment $0.00 $0.00 Interest Portion $0.00 $0.00 Principal Portion $0.00 $0.00 Principal Balance $31,000.00 $0.00 $0.00
Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.