Chapter 4: Chapter 4

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

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

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. $$ S=250,000, r=10.5, t=25, m=12 $$

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. $$ S=350,000, r=7.5, t=10, m=12 $$

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

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?

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

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?

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?

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