Question 1

At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually. What is the future value of Sherry's account in 14 years?

Accepted Answer

A)  $12,309 
B)  $13,100 
C)  $14,000 
D)  $12,709 
E)  None of these 
A)  $12,309 
B)  $13,100 
C)  $14,000 
D)  $12,709 
E)  None of these D

Question 2

Ed Sloan invests $1,600 at the beginning of each year for eight years into an account that pays 10% compounded semiannually. The value of the annuity due is (use the tables in the handbook):

Accepted Answer

A)  $41,344.48 
B)  $1,600.00 
C)  $38,744.48 
D)  $37,744.48 
E)  None of these 
A)  $41,344.48 
B)  $1,600.00 
C)  $38,744.48 
D)  $37,744.48 
E)  None of these E

Question 3

At the beginning of each period for 9 years, Scott Sullivan invested $900 quarterly at 4% interest compounded quarterly. What is the value of this annuity due?

Accepted Answer

The answer of At the beginning of each period for...

Question 4

Interest is not calculated in ordinary annuities.

Accepted Answer

A) True 
 B)False

Question 5

Insurance companies do not use annuities.

Accepted Answer

A) True 
 B)False

Question 6

Find the value of an investment after four years on $6,000 made quarterly at 8% for (A) an ordinary annuity and (B) an annuity due.
A. $111,835.20
B. $114,072

Accepted Answer

The answer of Find the value of an investment after...

Question 7

Use the tables in the handbook. What must you invest today in order to receive an annuity of $6,000 for four years semiannually at 12%? All withdrawals will be made at the end of each period.

Accepted Answer

The answer of Use the tables in the handbook. What...

Question 8

An annuity due compared with an ordinary annuity results in a:

Accepted Answer

A)  Higher value 
B)  Lower value 
C)  Same value 
D)  Value three times the annuity due 
E)  None of these 
A)  Higher value 
B)  Lower value 
C)  Same value 
D)  Value three times the annuity due 
E)  None of these

Question 9

Use the tables in the handbook. At the beginning of each year, Dick Raven invests $700 semiannually at 8% for eight years. What will be the cash value of this annuity due at the end of year 8?

Accepted Answer

The answer of Use the tables in the handbook. At...

Question 10

An annuity is:

Accepted Answer

A)  Not used by lotteries today 
B)  A one-time payment 
C)  A stream of payments 
D)  Never made up of equal payments 
E)  None of these 
A)  Not used by lotteries today 
B)  A one-time payment 
C)  A stream of payments 
D)  Never made up of equal payments 
E)  None of these

Question 11

Use the tables in the handbook. Jackie Bell invests $5,000 at the end of each year for 15 years. The rate of interest Jackie gets is 8% annually. What is the final value of Jackie's investment in this ordinary annuity?

Accepted Answer

The answer of Use the tables in the handbook. Jackie...

Question 12

Jorgen Grace made deposits of $250 at the end of each year for 12 years. The rate received was 6% annually. What is the value of the investment after 12 years?

Accepted Answer

A)  $2,028 
B)  $3,000 
C)  $4,217.48 
D)  $4,200 
E)  None of these 
A)  $2,028 
B)  $3,000 
C)  $4,217.48 
D)  $4,200 
E)  None of these

Question 13

A sinking fund:

Accepted Answer

A)  Requires at the beginning one lump sum payment 
B)  Is really not an annuity 
C)  Aids in meeting a future obligation 
D)  Does not compound its money 
E)  None of these 
A)  Requires at the beginning one lump sum payment 
B)  Is really not an annuity 
C)  Aids in meeting a future obligation 
D)  Does not compound its money 
E)  None of these

Question 14

At the beginning of each year, Bill Ross invests $1,400 semiannually at 8% for nine years. The cash value of the annuity due at the end of the ninth year is (use the tables in the handbook):

Accepted Answer

A)  $38,739.68 
B)  $37,399.68 
C)  $37,939.86 
D)  $37,339.68 
E)  None of these 
A)  $38,739.68 
B)  $37,399.68 
C)  $37,939.86 
D)  $37,339.68 
E)  None of these

Question 15

In 10 years, Longin Company will have to repay a $60,000 loan. Assume a 4% interest rate compounded quarterly. How much must Longin pay each period to have the $60,000 at the end of 10 years? Verify your result.

Accepted Answer

@#IMG-DLM& By amount of annuit

Question 16

Nancy Billows promised to pay her son $600 quarterly for four years. If Nancy can invest her money at 6% in an ordinary annuity, she must invest how much today? (Use the tables in the handbook.)

Accepted Answer

A)  $10,759.38 
B)  $10,759.83 
C)  $8,478.72 
D)  $8,478.27 
E)  None of these 
A)  $10,759.38 
B)  $10,759.83 
C)  $8,478.72 
D)  $8,478.27 
E)  None of these

Question 17

Angel Rowe wants to receive $7,500 each year for the next 25 years. Assume a 5% interest rate compounded annually. How much should Angel invest today?

Accepted Answer

The answer of Angel Rowe wants to receive $7,500 each...

Question 18

Scott deposits $5,000 at the end of each year into an account for five years. Assuming 6% interest annually, what is the value of his account in five years?

Accepted Answer

A)  $67,060 
B)  $21,873 
C)  $30,100 
D)  $28,185.50 
E)  None of these 
A)  $67,060 
B)  $21,873 
C)  $30,100 
D)  $28,185.50 
E)  None of these

Question 19

Use the tables in the handbook. What is the value of an investment after three years on an ordinary annuity of $5,000 made semiannually at 12%?

Accepted Answer

The answer of Use the tables in the handbook. What...

Question 20

Alice Wolf wants to know how much she will have to invest today in order to receive an annuity of $6,000 for four years if interest is earned at 10% annually. She will make all her withdrawals at the end of each year. How much should Alice invest?

Accepted Answer

The answer of Alice Wolf wants to know how much...

At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually. What is the future value of Sherry's account in 14 years?

Ed Sloan invests $1,600 at the beginning of each year for eight years into an account that pays 10% compounded semiannually. The value of the annuity due is (use the tables in the handbook):

At the beginning of each period for 9 years, Scott Sullivan invested $900 quarterly at 4% interest compounded quarterly. What is the value of this annuity due?

Interest is not calculated in ordinary annuities.

Insurance companies do not use annuities.

Find the value of an investment after four years on $6,000 made quarterly at 8% for (A) an ordinary annuity and (B) an annuity due. A. $111,835.20 B. $114,072

Use the tables in the handbook. What must you invest today in order to receive an annuity of $6,000 for four years semiannually at 12%? All withdrawals will be made at the end of each period.

An annuity due compared with an ordinary annuity results in a:

Use the tables in the handbook. At the beginning of each year, Dick Raven invests $700 semiannually at 8% for eight years. What will be the cash value of this annuity due at the end of year 8?

An annuity is:

Use the tables in the handbook. Jackie Bell invests $5,000 at the end of each year for 15 years. The rate of interest Jackie gets is 8% annually. What is the final value of Jackie's investment in this ordinary annuity?

Jorgen Grace made deposits of $250 at the end of each year for 12 years. The rate received was 6% annually. What is the value of the investment after 12 years?

A sinking fund:

At the beginning of each year, Bill Ross invests $1,400 semiannually at 8% for nine years. The cash value of the annuity due at the end of the ninth year is (use the tables in the handbook):

In 10 years, Longin Company will have to repay a $60,000 loan. Assume a 4% interest rate compounded quarterly. How much must Longin pay each period to have the $60,000 at the end of 10 years? Verify your result.

Nancy Billows promised to pay her son $600 quarterly for four years. If Nancy can invest her money at 6% in an ordinary annuity, she must invest how much today? (Use the tables in the handbook.)

Angel Rowe wants to receive $7,500 each year for the next 25 years. Assume a 5% interest rate compounded annually. How much should Angel invest today?

Scott deposits $5,000 at the end of each year into an account for five years. Assuming 6% interest annually, what is the value of his account in five years?

Use the tables in the handbook. What is the value of an investment after three years on an ordinary annuity of $5,000 made semiannually at 12%?

Alice Wolf wants to know how much she will have to invest today in order to receive an annuity of $6,000 for four years if interest is earned at 10% annually. She will make all her withdrawals at the end of each year. How much should Alice invest?

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters

Exam 13: Annuities and Sinking Funds

At the beginning of each year for 14 years, Sherry Kardell invested $400 that earns 10% annually. What is the future value of Sherry's account in 14 years?

Ed Sloan invests $1,600 at the beginning of each year for eight years into an account that pays 10% compounded semiannually. The value of the annuity due is (use the tables in the handbook):

At the beginning of each period for 9 years, Scott Sullivan invested $900 quarterly at 4% interest compounded quarterly. What is the value of this annuity due?

Interest is not calculated in ordinary annuities.

Insurance companies do not use annuities.

Find the value of an investment after four years on $6,000 made quarterly at 8% for (A) an ordinary annuity and (B) an annuity due. A. $111,835.20 B. $114,072

Use the tables in the handbook. What must you invest today in order to receive an annuity of $6,000 for four years semiannually at 12%? All withdrawals will be made at the end of each period.

An annuity due compared with an ordinary annuity results in a:

Use the tables in the handbook. At the beginning of each year, Dick Raven invests $700 semiannually at 8% for eight years. What will be the cash value of this annuity due at the end of year 8?

An annuity is:

Use the tables in the handbook. Jackie Bell invests $5,000 at the end of each year for 15 years. The rate of interest Jackie gets is 8% annually. What is the final value of Jackie's investment in this ordinary annuity?

Jorgen Grace made deposits of $250 at the end of each year for 12 years. The rate received was 6% annually. What is the value of the investment after 12 years?

A sinking fund:

At the beginning of each year, Bill Ross invests $1,400 semiannually at 8% for nine years. The cash value of the annuity due at the end of the ninth year is (use the tables in the handbook):

In 10 years, Longin Company will have to repay a $60,000 loan. Assume a 4% interest rate compounded quarterly. How much must Longin pay each period to have the $60,000 at the end of 10 years? Verify your result.

Nancy Billows promised to pay her son $600 quarterly for four years. If Nancy can invest her money at 6% in an ordinary annuity, she must invest how much today? (Use the tables in the handbook.)

Angel Rowe wants to receive $7,500 each year for the next 25 years. Assume a 5% interest rate compounded annually. How much should Angel invest today?

Scott deposits $5,000 at the end of each year into an account for five years. Assuming 6% interest annually, what is the value of his account in five years?

Use the tables in the handbook. What is the value of an investment after three years on an ordinary annuity of $5,000 made semiannually at 12%?

Alice Wolf wants to know how much she will have to invest today in order to receive an annuity of $6,000 for four years if interest is earned at 10% annually. She will make all her withdrawals at the end of each year. How much should Alice invest?

Whole Numbers: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How-To Approach for Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

Compound Interest and Present Value

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Depreciation

Inventory and Overhead

Sales, Excise, and Property Taxes

Filters