1-Find the amount of the annuity if the deposit is $1800 quarterly for 5 years a
ID: 2903074 • Letter: 1
Question
1-Find the amount of the annuity if the deposit is $1800 quarterly for 5 years at 8% compounded quarterly.
Amount = $
2-Mark deposits $1200 each month in a retirement plan paying 5% compounded monthly. How much will he have in the account after 18 years?
Answer = $
3-Find the quarterly payment needed to pay off a loan of $22000 amortized at 9% compounded quarterly for 7 years.
quarterly payment = $
4-Steve invested $1100 per quarter in an IRA each quarter for 5 years earning 7% compounded quarterly.
At the end of 5 years he ceased the IRA payments, but continued to invest his accumulated amount at 8% compounded quarterly for the next 7 years.
a) What was the value of his IRA at the end of 5 years?
Answer = $
b) What was the value of the investment at the end of the next 7 years?
Answer = $
Explanation / Answer
A
Quarterly Rate = 8/4 = 2%
Future Value = 1800*FVA(2%,5*4)
= $43,735.27
B
Monthly Rate = 5/12 = 0.42%
Future Value = 1200*FVA(0.42%,12*18)
= $170,688.79
C
Quarterly Rate = 7/4 = 1.75%
Let the quarterly payment be
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