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Jake Werkheiser decides to invest $4000 in an IRA at the end of each year for...

Jake Werkheiser decides to invest $4000 in an IRA at the end of each year for the next 5 years. If he makes these investments, and if the certificates pay 8%, compounded annually, how much will he have at the end of the 5 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due     


(b) Solve the problem. (Round your answer to the nearest cent.)

A family wants to have a $170,000 college fund for their children at the end of 14 years. What contribution must be made at the end of each quarter if their investment pays 7.5%, compounded quarterly?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    


(b) Solve the problem. (Round your answer to the nearest cent.)

Sam deposits $400 at the end of every 6 months in an account that pays 5%, compounded semiannually. How much will he have at the end of 3 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    


(b) Solve the problem. (Round your answer to the nearest cent.)

Grandparents plan to open an account on their grandchild's birthday and contribute each month until she goes to college. How much must they contribute at the beginning of each month in an investment that pays 10%, compounded monthly, if they want the balance to be $160,000 at the end of 18 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    


(b) Solve the problem. (Round your answer to the nearest cent.)

Jane Adele deposits $1,400 in an account at the beginning of each 3-month period for 9 years. If the account pays interest at the rate of 12%, compounded quarterly, how much will she have in her account after 9 years?

(a) State whether the problem relates to an ordinary annuity or an annuity due.

ordinary annuityannuity due    


(b) Solve the problem. (Round your answer to the nearest cent.)

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