Deck 10: Annuities: Future Value and Present Value

Question 1

Jennifer already has $15,500 saved for a down payment for a house and she plans to save another $400 at the end of each month for the next three years. If she earns 8.4% compounded monthly how large will her down payment be in three years?

A) $36,123
B) $36,237
C) $37,680
D) $19,924
E) $16,312

Answer 1

$36,237

Question 2

How much money would you have at the end of 10 years if you made deposits of $4,000 at the end of every three months into an investment that accumulated at 9% compounded quarterly?

A) $60,772
B) $168,781
C) $255,145
D) $1,351,530
E) $667,273

Answer 2

$255,145

Question 3

How much money would you have at the end of five years if you made deposits of $450 at the end of every month into an investment that accumulated at 18% compounded monthly?

A) $116,843
B) $43,297
C) $31,860
D) $27,000
E) $17,721

Answer 3

$43,297

Question 4

Sam will contribute $200 to his RRSP at the end of each month for 15 years and then raise his monthly contribution to $500 at the end of each month for the subsequent 20 years. If his investments earn 11.7% compounded monthly, what will be the value of the investments after the last $500 contribution is made 35 years from now?

A) $1,186,877
B) $572,207
C) $1,471,930
D) $521,751
E) $285,054

Question 5

How much money could Louie borrow if he can afford to make monthly payments of $350 for four years at an interest rate of 9% compounded monthly?

A) $14,065
B) $13,593
C) $10,752
D) $8,915
E) $3,827

Question 6

Calculate the present value of an ordinary annuity consisting of payments of $5,000 each, made at the end of every three months for six years. Assume that money is worth 7.2% compounded quarterly.

A) $46,070
B) $76,295
C) $96,748
D) $105,186
E) $122,517

Question 7

Marvin has determined that he can save at least $6 per day by quitting smoking and cutting out one cup of coffee or one can of pop per day. Therefore, he has decided to make contributions of $175 to his Retirement Savings Plan (RSP) at the end of each month for 35 years. He anticipates that his RSP will earn 13.2% compounded monthly. He is 20 years old now and therefore he will be only 55 when this plan is completed. How much money will be in his RSP when he is 55 years of age?

A) Less than $500,000
B) Between $500,000 and $1,000,000
C) Between $1,000,000 and $1,500,000
D) Between $1,500,000 and $2,000,000
E) More than $2,000,000

Question 8

What amount could you borrow at 6.6% compounded monthly if you can afford to make monthly payments of $775 for 25 years?

A) $40,688
B) $92,867
C) $101,106
D) $113,725
E) $217,155

Question 9

At the end of every six months for the last six years Vincent has borrowed $1,000 from Charley at an interest rate of 11% compounded semi-annually. He has not made any payments to reduce his debt. How much, including interest, does Vincent owe Charley now?

A) $19,920
B) $16,386
C) $22,714
D) $8,618
E) $15,536

Question 10

Terri and Larry plan to invest $5,000 at the end of each year in an individual retirement account earning a rate of return of 11% compounded annually. What will be the value of the account after 15 years?

A) $119,864
B) $172,027
C) $198,215
D) $214,739
E) $359,543

Question 11

Roger spends $60 per month on beer and $60 per month on cigarettes. He is going to quit smoking and cut his beer expense in half by making his own beer at the local U-Brew. At the end of every month the money he saves is going to go into an investment plan earning 12% compounded monthly. How much money should he have after 40 years?

A) $250,560
B) $443,946
C) $892,605
D) $1,058,830
E) $1,411,772

Question 12

Sparky will invest $7,500 into his RRSP at the end of each year for 30 years. How much more money will he have in 30 years if he is able to earn 13% compounded annually rather than 11% compounded annually?

A) $149,266
B) $219,899
C) $304,261
D) $589,114
E) $706,338

Question 13

What amount would you have to invest now at 10% compounded semi-annually in order to make withdrawals of $3,500 every half-year for eight years? The first withdrawal is to be made in six months.

A) $52,224
B) $28,000
C) $37,932
D) $36,126
E) $8,255

Question 14

Valerie has made investments of $10,000 at the end of every three months for the last 8 years. She has earned 11% compounded quarterly? What is the value of the investments today?

A) $97,427
B) $211,003
C) $320,000
D) $460.792
E) $502,699

Question 15

What amount would you have to invest now at 7% compounded annually in order to make withdrawals of $20,000 once per year for 25 years? The first withdrawal is to be made one year from now.

A) $233,072
B) $1,264,981
C) $544,343
D) $197,226
E) $427,561

Question 16

What amount will an ordinary annuity be worth in 25 years if quarterly payments of $1,750 are made and the interest rate is 14% compounded quarterly for the first 15 years and 10% compounded quarterly for the final 10 years?

A) $384,999
B) $461,859
C) $1,509,570
D) $1,062,754
E) $1,041,360

Question 17

Sara quit smoking and saves $80 per month previously spent on cigarettes. She invests the money at 5% compounded monthly. How much will she have in 10 years?

A) $7,542.51
B) $17,919.63
C) $12,422.58
D) $11,898.88
E) $12,474.34

Question 18

At the end of every year for 45 years Sabrina invested $500 into her retirement plan. The plan has earned 13% compounded annually over the 45 years. She made the last deposit today. How much money has she accumulated?

A) $1,783,603
B) $937,082
C) $480,583
D) $318,675
E) $157,950

Question 19

What is the future value of a series of 15 annual payments of $750 starting in one year and earning 7% compounded annually?

A) $6,831
B) $12,038
C) $17,673
D) $18,847
E) $32,848

Question 20

If you want to purchase an annuity providing an income of $2,000 at the end of each month for five years, how much will it cost if the purchase funds earn 18% compounded monthly?

A) $192,429.30
B) $78,760.54
C) $80,681.00
D) $4,886.44
E) $818.60

Question 21

George is planning to have a retirement income of $7,000 at the end of every three months for the first 15 years that he is retired and then increase it to $10,000 every three months for the next 10 years. If his retirement funds earn 9.0% compounded quarterly, how much money must he have when he retires?

A) $491,177
B) $117,279
C) $298,170
D) $256,814
E) $820,000

Question 22

What is the following prize worth today if money can earn 9% compounded monthly: $5,000 payable two years from now, and a series of eleven $100 monthly payments beginning one month from now?

A) $5,231.22
B) $7,124.26
C) $3,240.98
D) $3,265.29
E) $8,620.56

Question 23

The owner of a certain investment is entitled to receive $38 at the end of every six months for 11 years plus an additional single payment of $1,000 in 11 years. Mandy is thinking about purchasing this investment. If Mandy requires a rate of return of 8.4% compounded semi-annually what is the value of this investment to her?

A) $1,538.79
B) $1,240.49
C) $943.28
D) $989.22
E) $1,093.56

Question 24

Mr. Smith has made payments of $1,250 at the end of each quarter into an RRSP for the last four years. Interest at 12% compounded quarterly was earned. He decides to leave the accumulated money in the RRSP for another two years and not make any further payments to his RRSP. How much money will he have in his RRSP two years from now if the interest rate remains the same?

A) $2,540.99
B) $40,492.10
C) $31,917.67
D) $9,531.96
E) $43,033.09

Question 25

Calculate the difference in the current economic values of the following two annuities: Annuity "X": Payments of $10,000 made at the end of each year for the next 35 years.
Annuity "Y": Payments of $10,000 made at the end of each year for the next 55 years.
Use an interest rate of 13% compounded annually for both annuities.

A) Annuity "Y" is worth $70,248 more than Annuity "X."
B) Annuity "Y" is worth $26,225 more than Annuity "X."
C) Annuity "Y" is worth $8,672 more than Annuity "X."
D) Annuity "Y" is worth $975 more than Annuity "X."
E) Annuity "Y" is worth $203 more than Annuity "X."

Question 26

Calculate the difference in the current economic values of the following two annuities: #1: Payments of $300 made at the end of every month for the next five years. #2: Payments of $200 made at the end of every month for the next 10 years. Use an interest rate of 14.4% compounded monthly for both annuities.

A) Annuity #1 is worth $398 more than Annuity #2.
B) Annuity #1 is worth $95 more than Annuity #2.
C) The current economic values are within $10 of each other.
D) Annuity #2 is worth $95 more than Annuity #1.
E) Annuity #2 is worth $398 more than Annuity #1.

Question 27

A guaranteed contract entitles Jon to receive $525 at the end of every six months for the next nine years plus an additional single payment of $10,000 in nine years. If Jon sells the contract to The Corleone Finance Company now, for a price that would provide Corleone with a rate of return of 7.4% compounded semi-annually, what would that price be?

A) $14,649.75
B) $16,811.17
C) $9,408.82
D) $12,010.92
E) $19,450

Question 28

Fred purchased a boat for $18,000. He paid 10% down and the balance in equal monthly payments over five years at 18% compounded monthly. What does Fred pay each month?

A) $405.29
B) $457.08
C) $411.37
D) $450.33
E) $344.20

Question 29

Martina has already accumulated $32,000 in her RRSP. If she contributes $2,500 at the end of every six months for the next 12 years and $400 at the end of every month for the subsequent eight years, how much will she have at the end of the 20 years? Assume that her plan will earn 6% compounded semi-annually for the first 12 years and 6% compounded monthly for the last 8 years.

A) $293,054
B) $200,247
C) $204,132
D) $154,398
E) $217,873

Question 30

What amount of money will Kevin need to have in 20 years when he retires? His goal is to purchase an ordinary annuity that pays $1,000 per month for 30 years after he retires? Assume that after he retires the interest rate will be 7.2% compounded monthly.

A) $226,581
B) $350,550
C) $104,728
D) $147,321
E) $360,000

Question 31

Morgan has decided to make contributions of $250 to her Retirement Savings Plan (RSP) at the end of each month for 30 years. She anticipates that her RSP will earn 12.75% compounded monthly. She is 20 years old now and therefore he will be only 50 when this plan is completed. How much money will be in her RSP when she is 50 years of age?

A) $284,671
B) $641,893
C) $962,357
D) $1,033,348
E) $2,763,932

Question 32

If $1,000 per month is invested at 12% compounded monthly for the first three years and 16% compounded monthly thereafter, what will be the accumulated amount immediately after the 120^th investment. The first investment will be made one month from now.

A) $43,076.88
B) $1,602,487.93
C) $284,219.97
D) $230,038.69
E) $292,580.55

Question 33

Jason is considering one of two options. The first option is to receive $500 per month for the first 3 years and $850 per month for the last 2 years based on an interest rate of 3.3% compounded semi-annually. The second option is to receive $35,000 now. Determine which option should be chosen to maximize benefits now.

A) First option provides benefit of $35,684.42 compared to $35,000 for second
B) First option provides benefit of $37,464.27 compared to $35,000 for second
C) First option provides benefit of $38,861.85 compared to $35,000 for second
D) Second option provides a benefit of $35,000 compared to $34,684.42
E) Second option provides a benefit of $35,000 compared to $33,464.27

Question 34

Calculate the difference in the current economic values of the following two annuities: Annuity "A": Payments of $50 made at the end of each month for the next 30 years, using 9.6% compounded monthly. Annuity "B": Payments of $600 made at the end of every year for the next 50 years using 9.6% compounded annually.

A) Annuity "A" is worth $291 more than Annuity "B."
B) Annuity "A" is worth $103 more than Annuity "B."
C) The current economic values are within $50 of each other.
D) Annuity "B" is worth $103 more than Annuity "A."
E) Annuity "B" is worth $291 more than Annuity "A."

Question 35

You can purchase a residential building for $100,000 cash or $20,000 down and quarterly payments $3,000 for 10 years. The first payment would be due three months after the purchase date. If money can earn 10% compounded quarterly during the next 10 years, which option should you choose?

A) Both are equally as good so choose either one.
B) $100,000 cash
C) Neither option can earn 10% compounded quarterly so do nothing.
D) Not enough information to decide.
E) $20,000 down and $3,000 per quarter for 10 years.

Question 36

Jane won a prize: the right to receive 36 payments of $100 per month with the first payment one month from today. If money is worth 6% compounded monthly, what is the economic value of these payments three years from today?

A) $3,287.10
B) $3,933.61
C) $3,489.84
D) $3,600.00
E) $2,256.29

Question 37

Acme class B preferred shares pay quarterly dividends of $2.50. The shares must be redeemed at $100 by Acme 10 years from now when the last dividend is paid. At what price should the shares trade today if the rate of return required by the market on similar preferred shares is 12% compounded quarterly?

A) $57.79
B) $60.00
C) $88.44
D) $20.83
E) $83.33

Question 38

The winner of a "Fifty-million dollar" lottery prize is actually entitled to payments of $500,000 at the end of every six months for 50 years. The winner can select to receive a single lump sum payment equal to the present value of these payments calculated using a rate of 9.8% compounded semi-annually. What would be the amount of the single payment?

A) $5,101,597
B) $10,118,727
C) $20,118,147
D) $34,079,370
E) $39,453,072

Question 39

The winner of a "Ten-million dollar" lottery prize is actually entitled to payments of $33,333.33 at the end of every month for 25 years. The winner can select to receive a single lump sum payment equal to the present value of these payments calculated using a rate of 8.1% compounded monthly. What would be the amount of the single payment?

A) $9,190,000
B) $5,606,219
C) $4,282,000
D) $3,749,371
E) $1,328,950

Question 40

Fred made 12 end-of-month deposits of $250 into a mutual fund earning 16% compounded monthly. How much will he have in his account two years after his last deposit if the fund continues to earn 16% compounded monthly?

A) $4,438.83
B) $3,756.45
C) $19,399.58
D) $9,770.65
E) $6,014.20

Question 41

Franco purchased heavy machinery costing $95,000. The terms of the purchase were for monthly payments over 6 years at an interest rate of 6.5% compounded monthly. At the end of the 4^th year, Franco wanted to trade in this machinery for a newer model. Determine the balance owing on the old machinery at the end of year 4.

A) $35,049.11
B) $35,849.11
C) $36,149.11
D) $36,849.11
E) $37,149.11

Question 42

Shawna is considering one of two options. The first option is to receive $1,800 per month for the first 5 years and $2,000 per month for the last 5 years based on an interest rate of 6.5% compounded monthly. The second option is to receive $145,000 now. Determine which option should be chosen to maximize benefits now.

A) First option, as it provides benefit of $165,915.26 compared to $145,000 for second
B) First option, as it provides benefit of $155,915.16 compared to $145,000 for second
C) First option, as it provides benefit of $152,915.16 compared to $145,000 for second
D) First option, as it provides benefit of $150,915.16 compared to $145,000 for second
E) First option, as it provides benefit of $145,915.16 compared to $145,000 for second

Question 43

Assume two investments can earn 6.4% compounded annually. Determine how much larger an investment with consistent annual contributions of $3,000 be over 20 years, versus an investment where no payments are made for the first 5 years and annual contributions of $4,000 per year for the remaining 15 years.

A) The difference will be $18,230.64
B) The difference will be $19,230.64
C) The difference will be $20,230.64
D) The difference will be $21,230.64
E) The difference will be $22,230.64

Question 44

Determine the amount of interest earned at the end of year 9 based on $3,000 annual payments received in years 1, 3 and 5 given an interest rate of 5.2% compounded annually.

A) $3,241.20
B) $3,456.99
C) $3,688.18
D) $3,939.72
E) $4,004.48

Question 45

Determine the future value in year 10 of $5,000 annual payments received in years 1, 3 and 5 and $4,000 annual payments in years 2, 4 and 6 given an interest rate of 5% compounded annually.

A) $36,250.25
B) 36,759.45
C) $37,305.78
D) $37,908.42
E) $38,818.68

Question 46

Amanda is considering one of two options. The first option is to receive $48,000 now. The second option is to receive $75,000 at the end of the fifth year. Determine which option should be chosen to maximize benefits now given an interest rate of 8.8% compounded annually.

A) Second option, as it provides benefit of $54,194.53 compared to $48,000 for second
B) Second option, as it provides benefit of $53,194.53 compared to $48,000 for second
C) Second option, as it provides benefit of $52,194.53 compared to $48,000 for second
D) Second option, as it provides benefit of $51,194.53 compared to $48,000 for second
E) Second option, as it provides benefit of $49,194.53 compared to $48,000 for second

Question 47

If $2,000 is invested at the end of every three months, what will be the total value after 10 years? The investments earn 13% compounded annually.

A) $96,748
B) $159,643
C) $129,067
D) $154,359
E) $143,836

Question 48

Calculate the equivalent periodic interest rate per payment interval for the following annuity: Semi-annual payments earning 11% compounded quarterly.

A) 5.48991%
B) 5.57563%
C) 5.56812%
D) 5.35654%
E) 5.42639%

Question 49

Samuel has $290,000 in his Registered Retirement Savings Plan right now. He will not be able to make any more contributions to the RRSP but he is planning to let the money accumulate until he has enough so that he can take out $3,000 per month for 25 years. How long will he have to wait until he takes out the first $3,000 withdrawal? His investments earn 7.5% compounded monthly.

A) 39 months
B) 54 months
C) 89 months
D) 95 months
E) 112 months

Question 50

Mr. Smith made 24 monthly deposits of $250 into an account that earns 8% compounded quarterly. How much will be in the account three years after his last deposit?

A) $6,522.87
B) $8,272.57
C) $7,021.41
D) $8,218.15
E) $7,014.11

Question 51

At the end of every year for the next 45 years a trust fund has to pay out $250,000. The money in the fund will be earning 9% compounded annually for the first 25 years and 6% compounded annually for the last 20 years. In order to be able to make these payments, how much money would have to be in the trust fund now?

A) $2,788,180
B) $5,323,125
C) $5,601,917
D) $7,017,445
E) $11,125,000

Question 52

Juliana has $54,500 in her "World Tour Savings Plan" right now. She will not be able to make any more contributions to the Plan but she is planning to let the money accumulate until she has enough so that he can take out $2,500 per month for 3 years while she travels around the world. She will take out the first $2,500 one month after she leaves on her trip. If her investments earn 9.9% compounded monthly, how many months will it be before she leaves on her trip?

A) 29 months
B) 32 months
C) 36 months
D) 41 months
E) 43 months

Question 53

Determine the future value in year 8 of $3,000 annual payments received in years 2, 4 and 6 given an interest rate of 7% compounded annually.

A) $11,075.16
B) $11,869.28
C) $12,428.39
D) $12,990.80
E) $13,167.25

Question 54

Nick can purchase an annuity that in 5 years (end of 5^th year) will pay him $8,500 per year for 10 years. If interest is 5.7% compounded annually, determine how much Nick will pay now to purchase the annuity.

A) $52,445.51
B) $52,068.95
C) $51,991.42
D) $50,839.07
E) $50,440.68

Question 55

Jeannette plans to contribute $4,000 per year for the first 5 years; $5,000 per year for years 6 - 10; $6,000 per year for years 11 - 15; and $7,000 per year for years 16 - 20. If the rate of return on her investment is 3.5% compounded annually, determine the future value at the end of year 20.

A) $147,052.68
B) $147,922.47
C) $148,617.33
D) $149,508.27
E) $150,207.67

Question 56

Marge is planning to have a retirement income of $2,000 at the end of every month for the first 10 years that she is retired and then increase it to $3,000 per month for the next 20 years. If her retirement funds earn 7.8% compounded monthly, how much money must she have when she retires?

A) $960,000
B) $530,350
C) $333,598
D) $283,418
E) $64,099

Question 57

Calculate the equivalent periodic interest rate per payment interval for the following annuity: Monthly payments discounted at 8.4% compounded semi-annually.

A) 0.69444%
B) 1.35337%
C) 1.27999%
D) 0.7,0000%
E) 0.68806%

Question 58

Calculate the equivalent periodic interest rate per payment interval for the following annuity: Monthly payments discounted at 11% compounded annually.

A) 0.87346%
B) 1.11572%
C) 0.88793%
D) 0.91667%
E) 1.00078%

Question 59

Determine the current economic value of a 25-year annuity providing $10,000 per year for the first 10 years, $15,000 for the next 10 years and $25,000 for the last 5 years, given an interest rate of 6.3% compounded annually.

A) $159,025.85
B) $160,980.01
C) $162,432.65
D) $163,854.18
E) $167,525.89

Question 60

Calculate the equivalent periodic interest rate per payment interval for the following annuity: Semi-annual payments earning 6% compounded monthly.

A) 5.00000%
B) 0.83161%
C) 3.03775%
D) 2.97233%
E) 3.08771%

Question 61

Peter makes a $25,000 lump sum amount in an account earning 4.5% compounded quarterly. He plans to withdraw $250 per month over three years. Determine the future value of the account at the end of this period.

A) $22,674.15
B) $21,081.08
C) $19,528.82
D) $18,977.74
E) $17,602.45

Question 62

Fred and Ethel are going to take out a business loan on which they will make annual payments of $7,500 for six years. At that point in time they will also pay off the remaining balance which will be $37,155. Their interest rate is 7.6% compounded semi-annually. What is the amount that Fred and Ethel borrowed?

A) $82,155
B) $58,691
C) $54,666
D) $69,278
E) $91,821

Question 63

What amount would you have after 10 years by investing $500 at the end of every month if your investment earns 14% compounded quarterly?

A) $129,534
B) $74,407
C) $128,294
D) $116,024
E) $87,398

Question 64

A lump sum amount of $8,000 is deposited in an account along with monthly contributions of $400 for 5 years in an investment earning 6.6% compounded quarterly. At the end of this time, the investor begins to withdraw $5,000 semi-annually for 3 years with interest at 7.2% compounded semi-annually. Determine the amount remaining at the end of this time.

A) $13,180.18
B) $13,682.27
C) $14,118.25
D) $15,898.44
E) $16,605.13

Question 65

Ladner has a $8,000 loan earning 3.9% compounded annually. He plans to repay $450 per quarter over four years. Determine the loan amount remaining at the end of this period.

A) $1,105.56
B) $1,424.66
C) $1,579.93
D) $1,845.62
E) $1,968.22

Question 66

J. Spaulding Wilson's mortgage loan will require payments of $1,132 at the end of every month for six years and at that time his loan balance outstanding will be $133,040. The interest rate is 6.2% compounded semi-annually. How much did J. Spaulding Wilson borrow?

A) $201,100
B) $159,700
C) $147,200
D) $160,300
E) $148,700

Question 67

Nicola invested a lump sum of $75,000 now along with $150 per month for 15 years. Determine the future value if the rate of interest is 8% compounded semi-annually.

A) $294,566.12
B) $306,045.85
C) $311,205.68
D) $313,616.88
E) $325,089.01

Question 68

Juan has two investment accounts. The first had Juan make monthly deposits of $375 per month over 5 years at a rate of 4.4% compounded semi-annually. The second investment required Juan make an initial $5,000 deposit along with $125 quarterly deposits over a 5-year period at a rate of 3.5% compounded monthly. Determine the combined future value of both investments at the end of five years.

A) $35,186.27
B) $34,764.53
C) $34,011.67
D) $33,764.53
E) $33,011.67

Question 69

If Kelly can make monthly payments of $725 for 20 years, how much money could she borrow at 6.9% compounded semi-annually?

A) $117,324
B) $94,241
C) $118,197
D) $87,497
E) $94,956

Question 70

Derek contributed $200 per month for twenty years at an interest rate of 3.9% compounded semi-annually. Determine how much interest was earned over the twenty year period.

A) $24,282.30
B) $25,282.30
C) $26,282.30
D) $27,282.30
E) $28,282.30

Question 71

How much more interest will be earned by $1,000 monthly deposits over 10 years if interest was at 6% compounded monthly versus 6.2% compounded quarterly.

A) $1,504.90 more with quarterly compounding
B) $2,000.00 more with quarterly compounding
C) $1,504.90 more with monthly compounding
D) $2,000.00 more with monthly compounding
E) $805.67 more with monthly compounding

Question 72

If $500 is deposited into an investment at the end of every month for five years and the money is then left to accumulate without any more deposits for another five years, what will be the total value of the investment if it earns a rate of 8% compounded quarterly?

A) $187,103
B) $104,519
C) $91,201
D) $57,026
E) $54,516

Question 73

How much money could be borrowed at 7% compounded semi-annually if the borrower can make monthly payments of $875 for 25 years?

A) $124,926
B) $69,770
C) $24,999
D) $116,782
E) $123,801

Question 74

Max invested $9,000 per year in his RRSP each year for 20 years. If interest is 4% compounded quarterly, determine how much interest was earned at the end of this period.

A) $98,111.50
B) $95,682.45
C) $91,505.44
D) $89,688.56
E) $87,207.68

Question 75

James already has $13,000 in his Home Ownership Savings Plan (HOSP) and he is going to invest $700 more at the end of every three months for five more years. In total, how much will he have in five years if his HOSP earns 11% compounded annually?

A) $31,911
B) $40,047
C) $40,704
D) $38,880
E) $23,766

Question 76

Kerry's mortgage loan will require payments of $855 at the end of every month for four years and at that time her loan balance outstanding will be $78,591. The interest rate is 7.7% compounded semi-annually. How much did she borrow?

A) $93,400
B) $93,040
C) $92,078
D) $109,996
E) $112,702

Question 77

What amount would you borrow at 15% compounded annually if your loan payments are $3,800 per month for 10 years?

A) $235,535
B) $244,193
C) $318,782
D) $327,896
E) $378,625

Question 78

Determine the future value of $150 made at the end of every quarter for 15 years, given an interest rate of 4.5% compounded monthly.

A) $12,772.78
B) $12,904.12
C) $13,401.86
D) $13,915.68
E) $14,202.22

Question 79

Sharon wishes to have $30,000 in 4 years' time. If she deposits a lump sum of $3,500 now, then what monthly deposits need to be made if interest is at 2.7% compounded annually?

A) $495.16
B) $505.45
C) $515.99
D) $520.67
E) $565.20

Question 80

Dario invested a lump sum of $20,000 and began to invest $75 per quarter for 5 years. If interest is 7% compounded monthly, determine the total amount of interest earned over a 5 year period.

A) $7,067.66
B) $7,659.12
C) $7,908.45
D) $8,161.08
E) $8,631.93