Computing Annuity Amounts Under Different SituationsAnswer the questions to the following four separate scenarios.For #1 to #3, round your answer to the nearest whole dollar.For #4 and #5, round percentage to two decimal places (for example, enter 8.54 for 8.5444%).Do not use a negative sign with your answer. 1. Julie has $20,000 in a fund that earns 6% annual compound interest. If she desires to withdraw it in five equal annual amounts, starting today (at beginning of period), how much would she receive each year?Answer 2. Jules deposits $200 each semiannual period starting today (at beginning of period); this account earns 4% (annual rate). What is the balance in the account at the end of year 10?Answer 3. Jill purchases a new automobile that cost $11,200. She receives a $3,200 trade-in allowance for her old auto and signs a $8,000 note with a market rate of 8%. The note requires eight equal quarterly payments starting at the end of the first quarter from date of purchase. What is the amount of each payment?Answer 4. June deposits $1,600 at the end of each year in an investment account for five years at compound interest. The fund has a balance of $9,965 at the date of the last deposit. What rate of interest did she earn?Answer 5. On January 1, Jin owed a debt of $12,104. An agreement was reached that she would pay the debt plus compound interest in 24 monthly installments of $560, the first payment to be made at the end of January. What rate of annual interest is she paying?Answer

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Answered: 1. Julie has $20,000 in a fund that…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11E

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Computing Annuity Amounts Under Different Situations

Answer the questions to the following four separate scenarios.

For #1 to #3, round your answer to the nearest whole dollar.
For #4 and #5, round percentage to two decimal places (for example, enter 8.54 for 8.5444%).
Do not use a negative sign with your answer.

	1. Julie has $20,000 in a fund that earns 6% annual compound interest. If she desires to withdraw it in five equal annual amounts, starting today (at beginning of period), how much would she receive each year?	Answer
	2. Jules deposits $200 each semiannual period starting today (at beginning of period); this account earns 4% (annual rate). What is the balance in the account at the end of year 10?	Answer
	3. Jill purchases a new automobile that cost $11,200. She receives a $3,200 trade-in allowance for her old auto and signs a $8,000 note with a market rate of 8%. The note requires eight equal quarterly payments starting at the end of the first quarter from date of purchase. What is the amount of each payment?	Answer
	4. June deposits $1,600 at the end of each year in an investment account for five years at compound interest. The fund has a balance of $9,965 at the date of the last deposit. What rate of interest did she earn?	Answer
	5. On January 1, Jin owed a debt of $12,104. An agreement was reached that she would pay the debt plus compound interest in 24 monthly installments of $560, the first payment to be made at the end of January. What rate of annual interest is she paying?	Answer

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