Ordinary General Annuities - Finding the FV

1. Mr. Nowak has contributed $169.00 at the end of each year into an RRSP paying 4% per annum compounded quarterly.

(a) After 18 years Mr. Nowak will have $____ in the RRSP. (rounded to two decimal places)

(b) How much of the amount is interest? $____

2. Find the future value of the following ordinary annuity

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$550	1 year	3 Years	11%	Semi-annually

The future value is $____ (rounded to two decimal places)

3. What is the discounted value of $1538.00 paid at the end of every three months for 4 months if interest is 11% per annum compounded annually?

The discounted value is $____

4. A property was purchased for $4866.00 down and payments of $1170 at the end of every three months for 7 years. Interest is 3% per annum compounded annually.

(a) What was the purchase price of the property ? ( rounded to two decimal places )

(b) How much is the cost of financing ?

5. Langara Woodcraft borrowed money to purchase equipment. The loan is repaid by making payments of $811.52 at the end of every year over five years. If interest is 6.2% compounded quarterly, what was the original loan balance? (rounded to two decimal places)

6. As a settlement for an insurance claim, Craig was offered one of two choices. He could either accept a lump-sum amount of $11,748 now, or accept monthly payments of $188 for the next six years. If the money is placed into a trust fund earning 4.48% compounded annually, which is the better option and by how much?

The _________ option is better by $___

7. Find the present value of the following ordinary annuity.

Periodic Payment	Payment Interval	Term	Interest Rate	Conversion Period
$2700	1 Year	7 Years	9%	Quarterly

The present value is $___ (rounded to two decimal places )

8.Harlan made equal payments at the end of each month into his RRSP. If interest in his account is 8.8% compounded annually, and the balance after eleven years is $13,500, what is the size of the monthly payment?

The size of the monthly payment is $____

9. A vacation property valued at $32,000 was bought for 240 payments of $262 due at the end of every month. What nominal annual rate of interest compounded annually was charged?

The nominal annual rate of interest is ___%

10. A loan is repaid with payments of $6163 made at the end of each quarter for 5 years. If interest on the loan is 7.9%, compounded monthly, what is the initial value of the loan? (two decimals).

11. What payment needs to be made at the end of each year to accumulate $104201 over 10 years at 3.9% compounded monthly? Answer to two decimals.

12. What payment needs to be made at the end of each month to accumulate $71014 over 18 years at 10.6% compounded quarterly? Answer to two decimals.

13. What payment needs to be made at the end of each year to pay off a loan of $120582 over 31 years at 15% compounded monthly? Answer to two decimals.

14. What payment needs to be made semi-annually at the end of each period to pay off a loan of $66116 over 21 years at 14.6% compounded monthly? Answer to two decimals

15. 18 deposits increasing at a constant rate of 6% are made at the end of each year. The first deposit was 2339 and fund earns 5.2% compounded annually. What is the future value of the periodic constant growth payments? Answer to two decimals

16. 12 deposits increasing at a constant rate of 1.2% are made at the end of each year. The first deposit was 8446 and fund earns 6.4% compounded annually. What is the size of the last deposit? Answer to two decimals