5. Calculate the amount of a fifteen-year annuity, where $150 payments are made at the beginning...

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5. Calculate the amount of a fifteen-year annuity, where $150 payments are made at the beginning of every month and interest is compounded monthly at 13%. (4 marks) R = $150 n = 15 x 12 = 180 i = 0.13/12 = 0.010,833,333 Sn(due) 150(1+0.010,833,333) ([(1+0.010,833,333) 80 - 11/0.010,833,333) Sn(due) = 150(1.010,833,333) ([(1.010,833,333) 120 - 11/0.010,833,333) 3. What is this formula used for? (1 mark) (R(1+i)[1(1+i)=" i A (def) = 8. If you wish to receive $2,000 a month for ten years starting at the end of your first month of retirement twenty years from now, how much will have to be in the fund by the time you reach retirement age? Assume that money is worth 12%, compounded monthly. (4 marks) n = 0.12/12 = 0.01 R = 2000 n = 10 x 12 = 120 An 2000([1- (1 + 0.01)-20]/0.01) An = 2000([1 -0.302,994,780]/0.01) An $139,401.04 5. Calculate the amount of a fifteen-year annuity, where $150 payments are made at the beginning of every month and interest is compounded monthly at 13%. (4 marks) R = $150 n = 15 x 12 = 180 i = 0.13/12 = 0.010,833,333 Sn(due) 150(1+0.010,833,333) ([(1+0.010,833,333) 80 - 11/0.010,833,333) Sn(due) = 150(1.010,833,333) ([(1.010,833,333) 120 - 11/0.010,833,333) 3. What is this formula used for? (1 mark) (R(1+i)[1(1+i)=" i A (def) = 8. If you wish to receive $2,000 a month for ten years starting at the end of your first month of retirement twenty years from now, how much will have to be in the fund by the time you reach retirement age? Assume that money is worth 12%, compounded monthly. (4 marks) n = 0.12/12 = 0.01 R = 2000 n = 10 x 12 = 120 An 2000([1- (1 + 0.01)-20]/0.01) An = 2000([1 -0.302,994,780]/0.01) An $139,401.04