1. Monthly payments of $75 are paid into an annuity beginning on January 31 with a yearly interest rate of 9% compounded monthly. What is the total value of the annuity on September 1 (round to nearest cent). MATH 110 Sec 8-4: Annuities Practice Exercises

2. Monthly payments of $75 are paid into an annuity beginning on January 31 with a yearly interest rate of 9% compounded monthly. What is the total value of the annuity on September 1 (round to nearest cent). MATH 110 Sec 8-4: Annuities Practice Exercises First note that payments on an ordinary annuity are made at the end of each month so, by Sep 1, there are a total of 8 monthly payments.

3. Monthly payments of $75 are paid into an annuity beginning on January 31 with a yearly interest rate of 9% compounded monthly. What is the total value of the annuity on September 1 (round to nearest cent). MATH 110 Sec 8-4: Annuities Practice Exercises First note that payments on an ordinary annuity are made at the end of each month so, by Sep 1, there are a total of 8 monthly payments.

4. Monthly payments of $75 are paid into an annuity beginning on January 31 with a yearly interest rate of 9% compounded monthly. What is the total value of the annuity on September 1 (round to nearest cent). MATH 110 Sec 8-4: Annuities Practice Exercises

5. Find the value of the ordinary annuity at the end of the indicated time period (to nearest cent). The frequency of deposits is the same as the frequency of compounding. Amount: $1000, 5.5% quarterly, 8 yrs MATH 110 Sec 8-4: Annuities Practice Exercises

6. Find the value of the ordinary annuity at the end of the indicated time period (to nearest cent). The frequency of deposits is the same as the frequency of compounding. Amount: $1000, 5.5% quarterly, 8 yrs MATH 110 Sec 8-4: Annuities Practice Exercises

7. Kal wants to save $15,000 in 6 years with monthly payments to an ordinary annuity for a down payment on a condo at the beach. If the annuity pays 0.6% monthly interest, what will his monthly payment be? (Round answer UP to the nearest cent.) MATH 110 Sec 8-4: Annuities Practice Exercises

8. Kal wants to save $15,000 in 6 years with monthly payments to an ordinary annuity for a down payment on a condo at the beach. If the annuity pays 0.6% monthly interest, what will his monthly payment be? (Round answer UP to the nearest cent.) MATH 110 Sec 8-4: Annuities Practice Exercises

9. Kal wants to save $15,000 in 6 years with monthly payments to an ordinary annuity for a down payment on a condo at the beach. If the annuity pays 0.6% monthly interest, what will his monthly payment be? (Round answer UP to the nearest cent.) MATH 110 Sec 8-4: Annuities Practice Exercises BE CAREFUL! We are accustomed to being given r (the ANNUAL interest rate). But here we are given i (the MONTHLY interest rate) instead.

10. Kal wants to save $15,000 in 6 years with monthly payments to an ordinary annuity for a down payment on a condo at the beach. If the annuity pays 0.6% monthly interest, what will his monthly payment be? (Round answer UP to the nearest cent.) MATH 110 Sec 8-4: Annuities Practice Exercises BE CAREFUL! We are accustomed to being given r (the ANNUAL interest rate). But here we are given i (the MONTHLY interest rate) instead.

11. Kal wants to save $15,000 in 6 years with monthly payments to an ordinary annuity for a down payment on a condo at the beach. If the annuity pays 0.6% monthly interest, what will his monthly payment be? (Round answer UP to the nearest cent.) MATH 110 Sec 8-4: Annuities Practice Exercises

12. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). Max begins at age 41 saving $2400 per year in the same type of account until age 65 (25 payments). How much does each have in his account at age 65? (Round answers to the nearest cent.) MATH 110 Sec 8-4: Annuities Practice Exercises

13. The case of Max is simpler so let’s do it first. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). Max begins at age 41 saving $2400 per year in the same type of account until age 65 (25 payments). How much does each have in his account at age 65? (Round answers to the nearest cent.)

14. MATH 110 Sec 8-4: Annuities Practice Exercises The case of Max is simpler so let’s do it first. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). Max begins at age 41 saving $2400 per year in the same type of account until age 65 (25 payments). How much does each have in his account at age 65? (Round answers to the nearest cent.)

15. MATH 110 Sec 8-4: Annuities Practice Exercises At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). Max begins at age 41 saving $2400 per year in the same type of account until age 65 (25 payments). How much does each have in his account at age 65? (Round answers to the nearest cent.)

16. MATH 110 Sec 8-4: Annuities Practice Exercises Now let’s look at Julio’s case. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). Max begins at age 41 saving $2400 per year in the same type of account until age 65 (25 payments). How much does each have in his account at age 65? (Round answers to the nearest cent.)

17. MATH 110 Sec 8-4: Annuities Practice Exercises Now let’s look at Julio’s case. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.)

18. MATH 110 Sec 8-4: Annuities Practice Exercises Now let’s look at Julio’s case. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.)

19. MATH 110 Sec 8-4: Annuities Practice Exercises So, after 15 years, Julio has A = $31,342.03764 in his account. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.)

20. MATH 110 Sec 8-4: Annuities Practice Exercises So, after 15 years, Julio has A = $31,342.03764 in his account. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.) But now, Julio just lets that money sit in the account for 30 more years with no more periodic payments.

21. MATH 110 Sec 8-4: Annuities Practice Exercises So, after 15 years, Julio has A = $31,342.03764 in his account. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.) But now, Julio just lets that money sit in the account for 30 more years with no more periodic payments. This means for the last 30 years, this account is just an ordinary compound interest account.

22. MATH 110 Sec 8-4: Annuities Practice Exercises So, after 15 years, Julio has A = $31,342.03764 in his account. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.) But now, Julio just lets that money sit in the account for 30 more years with no more periodic payments. This means for the last 30 years, this account is just an ordinary compound interest account.

23. MATH 110 Sec 8-4: Annuities Practice Exercises So, after 15 years, Julio has A = $31,342.03764 in his account. At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). (Round to the nearest cent.) This means for the last 30 years, this account is just an ordinary compound interest account.

24. MATH 110 Sec 8-4: Annuities Practice Exercises At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs (Round to the nearest cent.)

25. MATH 110 Sec 8-4: Annuities Practice Exercises At age 21 Julio begins saving $1200 each year until age 35 (15 payments) in an ordinary annuity paying 7.5% annual interest compounded yearly and then leaves his money in the account until age 65 (30 yrs). Max begins at age 41 saving $2400 per year in the same type of account until age 65 (25 payments). How much does each have in his account at age 65? (Round answers to the nearest cent.)