WorksheetsL11-12 Annuity - Simple and general annuity
Total questions: 7
Worksheet time: 21mins
In an ordinary annuity, the payments:
are made at the end of the payment interval
are made at the beginning of the payment interval
are made in the middle of the payment interval
have intervals of varying length
A payment of $400 was made at the end of each year for five years into a savings account. The interest rate on the account is 6% compounded annually. Find the interest earned on the account.
$254.84
$174.89
$240.00
$200.00
2. A payment of $500 is made at the end of each month for three years to a savings account. The interest rate is 12% compounded monthly. Find the future value of the annuity.
a) $24,223.16
b) $16,872.00
c) $15,150.50
d) $21,538.44
Sue’s goal is to have $9000 in her savings account seven years from now. How much must she set aside at the end of each year at 5% compounded annually to meet this goal?
a)
b) $1285.71
c) $1555.38
d) $1089.66
$1105.38
$1285.71
$1555.38
$1089.66
Janice bought a dining room suite for $500 down and payments of $55.29 at the end of every month for four years. Interest on the purchase is 7.2% compounded monthly. What was the purchase price of the suite?
a. $2300.00
b. $3065.00
c. $3565.00
d. $2800.00
How many month-end payments of $275 are required to reach a savings goal of $5000 if the interest rate on the savings is 6% compounded monthly?
17
18
19
20
A property worth $20,000 is purchased for 5% down and quarterly payments of $388.63 for 15 years. What nominal rate of interest compounded semiannually was applied to the purchase?
2.86%
2.13%
2.08%
2.80%
