Find the future value of each using the future value of an ordinary annuity formula.  Shelly deposits the $2,000 she got as a birthday gift from her grandmotherinto an account earning 3.6% interest compounded monthly. She decides to also deposit $200 at the end of each month into the same account. How much will be in the account in 10 years? Julian won the lottery! He deposits some of his winnings intoan account earning 2.75% interest compounded quarterly. He makes his deposit of $25,000 and also decides to start making deposits of $1,000 into the same account at the end of each quarter. How much will he have after 5 years?

Q: Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: Janice and Terry Van Dyke have decided to establish a quarterly ordinary annuity of $8,000 for the…

A: Ordinary annuity refers to the periodic series of payments that an investor makes into an investment…

Q: Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She…

A: Given: Holly Krech is planning for her retirement, so she is setting up a pay-out annuity with her…

Q: 3. On a girl’s 10th birthday, her father started to deposit ₽5,000 quarterly at the end of each term…

A: Note: “Since you have asked multiple questions, I will solve the first question for you. If you want…

Q: David invests $300 into an account with a 2.3% interest rate that is compounded semiannually. How…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Find the future value of each using the future value of an ordinary annuity formula.  Priscilla…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Emma is saving for a new car. She deposits $2200 into an annuity account at the end of every year,…

A: Future value of annuity can be calculated with the help of annuity table given in the question.…

Q: Martina wants to save money to open a tutoring center. She buys an annuity with a yearly payment of…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Annuity: Annuity helps the investors to receive regular disbursements, for that the investors are…

Q: Sarah wants to save $20,000 to use for a down payment on a home. She deposits some money into a…

A: Individuals can save for expenditure by investing in financial instruments in which money grows at a…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 2.4%…

A: We will apply the required formula to calculate the quarterly payment, we will take the future value…

Q: Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the…

A: Given Information: Interest rate = 8.75% compounded semi-annually Lump-sum payment = $10,000 Payment…

Q: Larry wants to have $500,000.00 in 20 years. He found an annuity that is paying 3% with monthly…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: To save money for his daughter's college tuition, Josh invests $279 every quarter in an annuity that…

A: Annuity means number of payments, which are equal in size and made at equal interval of time for a…

Q: Willie deposits a fixed monthly amount into an annuity account for his child's college fund. He…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = $75000 P =…

Q: To start a new business, Eric invests $765.13 each month in an ordinary annuity paying 12% interest…

A: Computation:

Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: Annuity refers to the series of payments at regular intervals over a period of time. Future value of…

Q: Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: Future value of an annuity: Future value of the annuity is the annuity factor used to calculate the…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $5,300 of…

A: Calculate the present value of annuity as follows: Present value = Payment *(1-(1+rate)^-years)/Rate…

Q: Lola Fritola is planning for her retirement by making quarterly payments to an annuity with each…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: Andrew has an annuity that pays 4.4% annual interest compounded monthly and at the end of each month…

A: We need to calculate future value of annuity for the above question Formula: FV=PMTi(1+i)n-1 Where,…

Q: Manuel plans to set aside money for his young daughter’s college tuition. He will deposit money in…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. The…

Q: Cameron is saving for his retirement 22 years from now by setting up a savings plan. He has set up a…

A: Time period till retirement is 22 years Quarterly saving of $97.00 Time period of saving is 12 years…

Q: What semi-annual deposits does Adrian have to make?

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per…

A: Using excel PV function

Q: CFJ deposited P175,000 every 6 months for 5 years with an interest of 12% compounded semi-annually.…

A: The future value can be calculated using the FV Function in excel. FV = (RATE, NPER, PMT, PV, TYPE)…

Q: Cheryl Wilcox is planning for her retirement, so she is setting up a payout annuity with her bank.…

A: Amount to be saved monthly = Total future amount needed / Present value annuity factor for the…

Q: The terms of a single parent's will indicate that a child will receive an ordinary annuity of…

A: Interest, i=7%=0.07 p.a. Future value, S Ordinary annuity for 6 years, n=6 yearly payment, R =…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: It can be solved using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The interest…

Q: The Wright family wants to save money to travel the world. They purchase an annuity with a yearly…

A: The annuity value at end of 14 years can be calculated as future value of annuity.

Q: Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: The annuity is a series of cash flow wherein an equal amount is paid every period.

Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…

A: Computation:

Q: How much money does she need to pay into the annuity each quarter for the annuity to have a total…

A: Ordinary Annuity: These are payments made at the period end regularly for a period of time. The size…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…

A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…

Q: annuity.he plans to deposit $500 into this account each month at 2.4 % annual interest compounded…

A: in this problem we have to find out future value FACTOR and from that we get future value.

Q: Determine the kind of annuity used in the following situations. Then, solve the problem. Show your…

A: Future value of an annuity: = Annuity amount * Future value of annuity of $1 (rate per compounding…

Q: Can you help me work out this problem in detail?   Ben wants to receive $6,000 a year for 10 years.…

A:

Q: 1.) Miller likes to invest in annuity that will pay him Php. 5000 at the end of each month for 5…

A: Note : As per the guidelines, only first question will be answered. Kindly post the second question…

Q: Ms. H wants to save $1500 over the next two years to use as a down payment on a new car. If her bank…

A: I/Y = rate = 5%/12 = 0.416667% Nper = Number of periods = 2*12 = 24 FV = Future value = $1500 CPT…

Q: Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

Q: Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an…

A: The Trust need to pay $600 per month for twenty four year, so the individual need to deposit…

Q: The owner of the campus cafe plans to open a secound location on a satillite campus in 6 years. She…

A: Annual Payment = $3,000 Interest rate (r) 11.5% Years of annuity =6 years Future Value of annuity…

Q: Bob purchases an annuity that will pay him $10,000 a year for the next 15 years starting a year from…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Lisa purchased an annuity that had an interest rate of 3.00% compounded semi-annually. It provided…

A: The purchase price of an annuity corresponds to current worth of annuity payments that make investor…

Q: Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next…

A: Solution:- When an equal amount is paid each period at the end of period, it is called ordinary…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.