Eric Coleman invested $2500 four times a year in an annuity due at Southern Trust Company for a period of 4 years at an interest rate of 12% compounded quarterly. Using the ordinary annulty table, calculate the total value of the annuity due at the end of the 4-year period.

Q: Vusa has invested $420000 in an annuity that pays interest at the rate of 3.6% per annum,…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: Annuities are series of uniform and equal payments that are paid based on the time value of money.

Q: Maria took out a loan for $7900 that charges an annual interest rate of 8.8% compounded quarterly.…

A: n=4 r=8.8/4/100=0.022 present value=7900

Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…

A: The compound interest is calculated on the principal amount annually. It considers the present value…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: Annuities are series of uniform and equal payments that are paid based on the time value of money.

Q: Andy invested $850 semi-annually for eight years at 6%, compounded semi-annually. What is the value…

A: Amount invested = $850 Time Period = 8 Years Interest Rate = 6%

Q: Bobby Nelson, made deposits of $880 at the end of each year for 6 years. Interest is 6% compounded…

A: The value of Bobby’s annuity at the end of 6 years can be calculated using FV function in excel. FV…

Q: Deepika deposits $10000 into her savings account that earns 7% per annum compounded annually for…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: An architect is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: When the payment is received at the beginning of a period it is called as annuity due. In the given…

Q: On January 1, Year 1, Philip Holding invests $40,000 in an annuity to provide 8 equal semi-annual…

A: The annuity refers to the series of systematic and regular repayments or withdrawals from the…

Q: Owen borrowed $28,500 at 9% compounded monthly to buy a car. The loan will be repaid with equal…

A: The loan schedule gives information to the lender and borrower about the loan payments due and the…

Q: Carlos invested $1,800 at the beginning of every 6 months in an RRSP for 11 years. For the first 6…

A: We need to use future value of annuity due formula to calculate value of fund at specified…

Q: Donald Turner invested $4500 twice a year in an annuity due at Capital Appreciation, Inc. for a…

A: Periodic deposit (D) = $4500 n = 7 years = 14 deposits r = 4% per annum = 2% per period

Q: Omega Inc. purchased a deffered annuity which pays $23,000 at the beginning of every three months…

A: An annuity is a stream of cash flows that occurs at equal time intervals. This series of cash flows…

Q: What was the size of the periodic payments?

A: First, we need to determine the equivalent interest rate as the loan is compounded monthly, but the…

Q: A deposit of $20,000 is placed in his scholarship fond that earns an annual interest rate of four.…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: You are considering investing RM60000 in new equipment. You estimate that the net cash flows will be…

A: Equivalent annual cost is the cost of a project annually for the time period of its completion. This…

Q: Stephen deposited $1,200 at the end of every month into an RRSP for 8 years. The interest rate…

A: Amount deposited at the end of every month is $1200 Time period is 8 years Interest rate for first…

Q: 7) Lenny took out a $31,000 loan, making monthly payments of $400 for 12 years at 5.09% interest.…

A: Lets understand the basics. We are required to prepare amortization schedule in this question. It is…

Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly…

A: Quaterly deposit in investment fund is $400 Interest rate of quaterly fund is 4.6% payable quaterly…

Q: Lauren deposited $1,200 at the end of every month into an RRSP for 7 years. The interest rate earned…

A: Deposit = 1200 per month END OF PERIOD DEPOSITS Time Period = 7 Years  × 12 = 84 Months   Semi…

Q: Find the future value of a deposit of $15000 at 6% interest compounded monthly for 11 years.

A: As per the guidelines if multiple questions are asked at once, then the solution for the first…

Q: George invested $1,200 at the end of every month into an RRSP for 8 years. The interest rate earned…

A: Here,Monthly Deposits is $1,200Total Years of Investment is 8 yearsInterest Rate for first five…

Q: Twice a year for 6 years, Wendy Cortez invested $800 compounded semiannually at 12% interest. What…

A: Annuity due is the annuity payments or receipts at the start of the period. The value is computed as…

Q: Anika deposited $900 at the end of every month into an RRSP for 8 years. The interest rate earned…

A: Monthly deposits = $900First 4 year interest rate = 5.50% compounded quarterlyNext 4 years interest…

Q: Jennifer deposits $1000 into a bank account. The bank credits interest at a nominal annual rate of i…

A: First we need to calculate interest rate bu using future value formula below.FV = PV*(1 + i)n FV =…

Q: Sam deposited $900 at the end of every month into an RRSP for 7 years. The interest rate earned was…

A: Here, Monthly Deposit is $900 Interest Rate for first 4 years is 4.50% compounding Semi Annually…

Q: ▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond…

A: Future of the annuity is required to calculate the sinking fund amount and sinking fund is the…

Q: Betty Adams invested 3,000 pesos four times a year in an annuity due at Hicks and Marston…

A: The value of annuity can be calculated as the future value of ordinary annuity

Q: Natalia makes deposits in an account earning 6% annual effective at the beginning of each quarter…

A: The objective of the question is to calculate the value of P, which is the increase in the quarterly…

Q: Abdullah deposits OMR 1200 at the end of every year for 20 years and the deposit earns a compound…

A: Future value = Yearly deposit * future value annuity factor @5.33% for 20 years

Q: On September 8, Bert Sarkis started an annuity. He arranged to have $60 deducted from his…

A: (a)Deduction amount at month-end paycheck, A = $60 Interest rate = 7% compounded monthlyInterest…

Q: Eric deposited $1,400 at the end of every month into an RRSP for 8 years. The interest rate earned…

A: Accumulated value refers to the future value of the investment made by the investors effecting by…

Q: Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the…

A: Annuity = a = $1300 Time = t = 26 years Interest rate = r = 8%

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.