# Chapter 4: Chapter 4

Problem 12

Find the present value of each ordinary annuity. $$\$ 3000 /$$ semiannual period for 6 yr at \(11 \%\) year compounded semiannually

Problem 13

Find the accumulated amount \(A\) if the principal \(P\) is invested at the interest rate of \(r /\) year for \(t\) yr. $$ P=\$ 2500, r=7 \%, t=10, \text { compounded semiannually } $$

Problem 13

Find the periodic payment \(R\) required to accumulate a sum of \(S\) dollars over \(t\) yr with interest earned at the rate of \(r \% /\) year compounded \(m\) times a year. $$ S=250,000, r=10.5, t=25, m=12 $$

Problem 14

Find the periodic payment \(R\) required to accumulate a sum of \(S\) dollars over \(t\) yr with interest earned at the rate of \(r \% /\) year compounded \(m\) times a year. $$ S=350,000, r=7.5, t=10, m=12 $$

Problem 14

Find the accumulated amount \(A\) if the principal \(P\) is invested at the interest rate of \(r /\) year for \(t\) yr. $$ P=\$ 2500, r=9 \%, t=10 \frac{1}{2}, \text { compounded semiannually } $$

Problem 15

If a merchant deposits $$\$ 1500$$ at the end of each tax year in an IRA paying interest at the rate of \(8 \% /\) year compounded annually, how much will she have in her account at the end of 25 yr?

Problem 15

Find the accumulated amount \(A\) if the principal \(P\) is invested at the interest rate of \(r /\) year for \(t\) yr. $$ P=\$ 12,000, r=8 \%, t=10 \frac{1}{2}, \text { compounded quarterly } $$

Problem 15

Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at the rate of \(10 \% /\) year compounded quarterly. If the future value of the annuity after \(5 \mathrm{yr}\) is \(\$ 50,000\), what was the size of each payment?

Problem 16

If Jackson deposits $$\$ 100$$ at the end of each month in a savings account earning interest at the rate of \(8 \%\) /year compounded monthly, how much will he have on deposit in his savings account at the end of \(6 \mathrm{yr}\), assuming that he makes no withdrawals during that period?

Problem 16

Find the accumulated amount \(A\) if the principal \(P\) is invested at the interest rate of \(r /\) year for \(t\) yr. $$ P=\$ 42,000, r=7 \frac{3}{4} \%, t=8, \text { compounded quarterly } $$