Question
In: Finance
1. In the following ordinary annuity, the interest is compounded with each payment, and the payment...
1. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
Find the accumulated amount of the annuity. (Round your answer to
the nearest cent.)
$1000 monthly at 6.3% for 20 years.
2. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
Find the required payment for the sinking fund. (Round your answer
to the nearest cent.)
Monthly deposits earning 5% to accumulate $6000 after 10 years.
3. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
Find the required payment for the sinking fund. (Round your answer
to the nearest cent.)
Yearly deposits earning 12.2% to accumulate $5500 after 12 years.
4. In the following ordinary annuity, the interest is compounded
with each payment, and the payment is made at the end of the
compounding period.
Find the amount of time needed for the sinking fund to reach the
given accumulated amount. (Round your answer to two decimal
places.)
$265 monthly at 5.8% to accumulate $25,000.
Solutions
Expert Solution
1)
2)
3)
4)
Hence, required time is 78 months or 6.49 years (78/12)
jeff jeffy answered 2 hours agoRelated Solutions
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with each payment, and the payment is made at the end of the
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Find the required payment for the sinking fund. (Round your answer
to the nearest cent.)
Yearly deposits earning 12.8% to accumulate $3500 after 12
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Find the amount of time...
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