QUIZ 4 ANNUITY

Maria deposits RM100 every month for 6 years into an account that earns 5% compounded monthly. How much interest will her account have earned?

• RM1,176.43

• RM7,200.00

• RM8,376.43

• RM2,235.56

Marcie Mays plans to have RM350,000 in a retirement fund 30 years from now. What monthly payment should she make, if the investment she has selected earns 7.2% compounded monthly?

• RM3,129.09

• RM871.29

• RM2,375.76

• RM2,757.59

An investor has been making RM1,000 annual contributions to his account for five years. In this problem, should the future value be more than, less than, or equal to RM5,000?

• less than RM5,000

• more than RM5,000

• equal to RM5,000

• All of them

An ordinary annuity was purchased 5 years ago. The annuity pays 8% compounded quarterly. The quarterly payments have been RM500. What is the total value after 5 years?

• RM12,148.68

• RM2,602.02

• RM2,933.30

• RM22,880.98

Maria borrowed RMZ from a bank which she pays RM100 every month for 6 years into an account that earns 5% compounded monthly. What is the value of Z?

• RM6209.28

• RM7200.00

• RM8,376.43

• RM2,235.56

Lily deposits RM100 every month for 5 years 8 months into an account that earns 5% compounded monthly. What is the value of n?

• 68

• 5.8

• 6

• 60