Calculating Annuity Payments

If the present value of an ordinary annuity is $10,000, the interest rate is 5%, and it is compounded semiannaully for 5 years, what is the periodic payment amount?

• $800.00

• $1,322.86

• $500.00

• $2,000.00

If the present value of an ordinary annuity is $50,000, the interest rate is 8%, and it is compounded annually for 5 years, what is the periodic payment amount?

• $10,000

• $12,578.78

• $20,000

• $15,000

If the periodic payment amount of an ordinary annuity is $500, the interest rate is 4%, and it is compounded quarterly for 5 years, what is the present value of the annuity?

• The present value of the annuity is $7,948.10.

• The present value of the annuity is $5,000.

• The present value of the annuity is $8,500.

• The present value of the annuity is $6,000.

What is the periodic payment amount of an ordinary annuity if the present value is $30,000, the interest rate is 7%, and it is compounded quarterly for 2 years?

• $5,019.78

• $3,500.00

• $6,200.00

• $4,800.00

A company wants to save $50,000 in 10 years by making annual deposits into an ordinary annuity with an interest rate of 6%. What should be the annual deposit amount?

• $5,000

• $10,000

• $2,000

• $3,789.94

What is the periodic payment amount of an ordinary annuity if the present value is $25,000, it is compounded annually for 5 years, and the interest rate is 3%?

• $3,500.00

• $10,000.00

• $20,000.00

• $5,877.85

If the present value of an ordinary annuity is $15,000, the interest rate is 6%, and it is compounded annually for 4 years, what is the periodic payment amount?

• $3,000

• $4,000

• $3,789.94

• $3,500

A company wants to save $100,000 in 20 years by making annual deposits into an ordinary annuity with an interest rate of 5%. What should be the annual deposit amount?

• $5,000

• $2,500

• $3,000

• $4,789.94

What is the periodic payment amount of an ordinary annuity if the present value is $40,000, the interest rate is 4%, and it is compounded semiannually for 3 years?

• $6,019.78

• $5,500.00

• $7,200.00

• $6,800.00

If the present value of an ordinary annuity is $20,000, the interest rate is 7%, and it is compounded quarterly for 3 years, what is the periodic payment amount?

• $5,019.78

• $4,500.00

• $6,200.00

• $5,800.00