FV-Ordinary Annuity. Various Compounding 9-15 Find the future values of the following ordinary annuities: a. FV of $400 each six months for five years at a simple rate of 12 percent, compounded semiannually b. Periods FV of $200 each three months for five years at a simple rate of 12 percent, compounded quarterly C. The annuities described in parts (a) and (b) have the same amount of money paid into them during the five-year period and both earn interest at the same simple rate, yet the annuity in part (b) earns $101.75 more than the one in part (a) over the five years. Why does this occur?

An annuty pays monthly for 16 years at the beginning of each month. Payments during the first year are 50/month. Year 2 payments are each 5, The payments go up by 20 for each subsequent year but are level within each vear. AEIR = 2% please find the accumulated value of this annuity just prior to the payment at t-14 Save Answer O A 25,445. 93 O B 25,712.12 O C 22,056. 64 O D 27,205. 54 O E The anser does not appear here

A perpetuity-due with annual payments consists often level payments of X followed by a series of increasing payments. Beginning with the eleventh payment, each payment is 1.5% larger than the preceding payment. Using an annual effective interest rate of 5%, the present value of the perpetuity is 45,000. Calculate X. B C 1,679 E 1,696 1,737 D 1,763 1,781

UNIT 7-18

Determine the nominal annual rate of interest of the following ordinary general annuity. Periodic Term Conversion Period Payment $81 semi-annually Present Value $1700 Payment Interval 3 months SCCCS The nominal annual rate of interest is (Round to two decimal places as needed.) 7 years % compounded semi-annually.

Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $500 deposited annually at 5.4% for 8 years

For the following ordinary annuity, determine the size of the periodic payment. Present Future Value Value Payment Period $4,400.00 1 quarter Term of Annuity Interest Rate 16 years, 3 months Conversion Period 8.3% quarterly The periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

K Calculate the total interest and principal portions for the series of monthly payments of $166.95 that occur during year 7, for an ordinary annuity of $13,500 with 8.5% interest compounded quarterly for 10 years. Round your answers to two decimal places. Principal Number Interest Number

Find the future values of the following ordinary annuities: a. FV of $600 paid each 6 months for 5 years at a nominal rate of 6% compounded semiannually. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. FV of $300 paid each 3 months for 5 years at a nominal rate of 6% compounded quarterly. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? 819000.0 The annuity in part (b) is compounded more frequently, therefore, more interest is earned on previously-earned interest. V

Find the term of the following ordinary general annuity. State your answer in years and months (from 0 to 11 months). Present Periodic Payment Interval Interest Compounding Period Value Payment Rate $10,300 $330 month 3% semi-annually The term of the annuity is year(s) and month(s).