Description
1. a. Use the appropriate formula to find the value of the annuity.
b. Find the interest.
| Periodic Deposit |
Rate |
Time |
|---|---|---|
|
$1000 at the end of each year |
5% compounded annually |
25 years |
2. a. Use the appropriate formula to find the value of the annuity.
b. Find the interest.
| Periodic Deposit |
Rate |
Time |
|---|---|---|
|
$40 at the end of each month |
5% compounded monthly |
35 years |
3. a. Use the appropriate formula to find the value of the annuity.
b. Find the interest.
| Periodic Deposit |
Rate |
Time |
|---|---|---|
|
$80 at the end of every six months |
3.5% compounded semiannually |
30 years |
4. a. Use the appropriate formula to find the value of the annuity.
b. Find the interest.
| Periodic Deposit |
Rate |
Time |
|---|---|---|
|
$2000 at the end of every three months |
6.75% compounded quarterly |
8 years |
5. a. Use the appropriate formula to determine the periodic deposit.
b. How much of the financial goal comes from deposits and how much comes from interest?
| Periodic Deposit |
Rate |
Time |
Financial Goal |
|
$? at the end of each year |
5% compounded annually |
14 years |
$120,000 |
6. a. Use the appropriate formula to determine the periodic deposit.
b. How much of the financial goal comes from deposits and how much comes from interest?
| Periodic Deposit |
Rate |
Time |
Financial Goal |
|---|---|---|---|
|
$? at the end of each month |
7.25% compounded monthly |
35 years |
$1,000,000 |
7. a. Use the appropriate formula to determine the periodic deposit.
b. How much of the financial goal comes from deposits and how much comes from interest?
| Periodic Deposit |
Rate |
Time |
Financial Goal |
|---|---|---|---|
|
$? at the end of every three months |
5.5% compounded quarterly |
4 years |
$30,000 |
