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Find the amount of an annuity that consists of 24 monthly payments of $700 each into an account that pays 8% interest per year, compounded monthly. NOTE:

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Presentation on theme: "Find the amount of an annuity that consists of 24 monthly payments of $700 each into an account that pays 8% interest per year, compounded monthly. NOTE:"— Presentation transcript:

1 Find the amount of an annuity that consists of 24 monthly payments of $700 each into an account that pays 8% interest per year, compounded monthly. NOTE: please round your answer to the nearest dollar. Choose your answer from the following: $18,153 2.$221,593,610 3.$1,405 4.$1,815

2 How much money should be invested every quarter at 6% per year, compounded quarterly, in order to have $6,000 in 2 years? NOTE: please round your answer to the nearest dollar. Choose your answer from the following: $712 2.$2,978 3.$963 4.$284,602

3 A 30-year-old man deposits $50,000 to fund an annuity with an insurance company. The money will be invested at 7% per year, compounded semiannually. He is to draw semiannual payments until he reaches age 60. What is the amount of each payment? NOTE: please round your answer to the nearest dollar. Choose your answer from the following: , , ,719

4 A couple can afford to make a monthly mortgage payment of $550. If the mortgage rate is 9% and the couple intends to secure a 35-year mortgage, how much can they borrow? NOTE: please round your answer to the nearest dollar. Choose your answer from the following: $70,154 2.$71,388 3.$67,987 4.$56,698

5 John buys a stereo system for $870. He agrees to pay $39 per month for 2 years. Assuming that interest is compounded monthly, what interest rate is he paying? Note: To solve this task use graphical indicator. Choose your answer from the following: % 2.13% 3.4% 4.14%

6 An item at a department store is priced at $100 and can be bought by making 16 payments of $7. Find the interest rate, assuming that interest is compounded monthly. Choose your answer from the following: % 2.18% 3.9% 4.19%


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