Question

What is the present value of the following annuity? $1,070 every half year at the beginning of the period for the next 14 years, discounted back to the present at 3.13 percent per year, compounded semiannually.

You plan to buy a house in 14 years. You want to save money for a down payment on the new house. You are able to place $348 every month at the end of the month into a savings account at an annual rate of 5.59 percent, compounded monthly. How much money will be in the account after you made the last payment?

You are going to save money for your son’s education. You have decided to place $3,736 every half year at the end of the period into a saving account earning 13.29 percent per year, compounded semi-annually for the next 8 years. How much money will be in the account at the end of that time period?

A car dealership offers you no money down on a new car. You may pay for the car for 3 years by equal monthly end-of-the-month payments of $597 each, with the first payment to be made one month from today. If the discount annual rate is 15.90 percent compounded monthly, what is the present value of the car payments?

What is the present value of the following annuity? $1,525 every quarter year at the end of the quarter for the next 15 years, discounted back to the present at 11.46 percent per year, compounded quarterly?

Answer 1