1. 
   

   1. Consider the scenario:

      After you retire, your retirement fund has $250,000 in it to pay regular monthly payments for 20 years starting today. What are the regular payments if interest is 1.2% compounded monthly?

      What kind of question is t

      1.
      Consider the scenario:

      After you retire, your retirement fund has $250,000 in it to pay regular monthly payments for 20 years starting today. What are the regular payments if interest is 1.2% compounded monthly?

      What kind of question is this?

      		Future Value Annuity Due
      		Future Value Annuity
      		Present Value Annuity Due
      		Present Value Annuity

   2. Interest is earned at a rate of 1% each quarter for 10 years. How much will you save after the ten years if you deposit $500 at the end of each quarter?

      What kind of problem is this?

   3. 2. Interest is earned at a rate of 1% each quarter for 10 years. How much will you save after the ten years if you deposit $500 at the end of each quarter?

      What kind of problem is this?

   4. 		Future Value Annuity Due
      		Future Value Annuity
      		Present Value Annuity Due
      		Present Value Annuity

   5. Consider the scenario:

      3. An account is set up to withdraw $500 each month indefinitely for any expenses that may arise. If money can earn 2% compounded monthly, how much needs to be in the account if the first withdrawal happens 1 month from today?

      What kind of problem is this?

      Consider the scenario:

      An account is set up to withdraw $500 each month indefinitely for any expenses that may arise. If money can earn 2% compounded monthly, how much needs to be in the account if the first withdrawal happens 1 month from today?

      What kind of problem is this?

      		Perpetuity
      		Perpetuity Due

      
      

   6. You will be deposit $10000 today and let it accumulate interest for a year, then you will withdrawal $100 regularly each quarter starting right at the year mark. If money can earn 1% compounded quarterly, how long can you withdraw $100?
      

      This is an example of a deferred annuity.

      4.  You will be deposit $10000 today and let it accumulate interest for a year, then you will withdrawal $100 regularly each quarter starting right at the year mark. If money can earn 1% compounded quarterly, how long can you withdraw $100?
      

      This is an example of a deferred annuity.

       True

       False

   7. You will be deposit $10000 today and let it accumulate interest for a year, then you will withdrawal $100 regularly each quarter starting right at the year mark. If money can earn 1% compounded quarterly, how long can you withdraw $100?

      When doing the calculations needed for this question, you could use the annuity or annuity due formulas.

      5. You will be deposit $10000 today and let it accumulate interest for a year, then you will withdrawal $100 regularly each quarter starting right at the year mark. If money can earn 1% compounded quarterly, how long can you withdraw $100?

      When doing the calculations needed for this question, you could use the annuity or annuity due formulas.

       True

       False

   8. Deposits made starting today each month for 5 years will be used for a trip that should cost around $2000. If money can earn 3% compounded monthly, what payments need to be made?

      What type of problem is this?

   6. Deposits made starting today each month for 5 years will be used for a trip that should cost around $2000. If money can earn 3% compounded monthly, what payments need to be made?

   What type of problem is this?

   9. 		Future value annuity
      		Present value annuity
      		Future value annuity due
      		Present value annuity due

Answer rating: 100% (QA)

1 B Future Value Annuity The Monthly compounded Interest Formula can be calculated as Lets take an example to understand the calculation of Monthly Co... View the full answer