Harleen has deposited​ $125 at the end of each month for 13 years at​ 4.68% compounded monthly. After her last deposit she converted the balance into an ordinary annuity paying​ $890 every three months for nine years. What is the nominal annual rate of​ interest, compounded​ quarterly, paid by the​ annuity?

Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…

A: The compound interest is calculated on the principal amount annually. It considers the present value…

Q: Hannah places $ 6500 into an account earning 7.75% interest compounded continuously, how much will…

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A: Basic Details: Investment = $8400 Time = 8 Years and 10 Months Interest = 5% semi Annually

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A: In this we need to calculate present value factor monthly to get the interest rate.

Q: Karen deposits 700 each month into an annuity that pays 12% annual interest at the end of each year.…

A: solution given Deposits each month (p) 700 Rate of interest (r) 12% Time period…

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A: GIVEN, PV = $3500 R=8.75% T=7 YEARS

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A: Periodic Payment = $2,400 Time Period = 11 Years Interest Rate = 10%

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A: ANNUITY is the series of equal payments made at regular interval of time.

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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: If an individual is regularly depositing certain account at the beginning of the period it would be…

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Q: Sam deposits $800 at the end of every 6 months in an account that pays 7%, compounded semiannually.…

A: Ordinary annuity is the annuity that is paid at the end of the each period whereas the annuity due…

Q: To start a new business, Eric invests $765.13 each month in an ordinary annuity paying 12% interest…

A: Computation:

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Q: . Leo invested $67 250 into an annuity earning 4.4% compounded semi-annually. How much is he able to…

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Q: Randall will make deposits of $3,130 at the end of every year into an account earning 3.29%…

A: Ordinary General Annuity is the annuity when payment is made at the beginning or end of each month…

Q: Jane begins a savings program to have $4000 after 7 years. She makes a regular deposit every month…

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Q: Leanne Simon made ordinary annuity payments of $100.00 per month for 15 years earning 4.5%…

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Q: Sid has made deposits of 960 at the end of every 6 months for five years. If interest is 5%…

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Q: Sonia sets aside £125 at the start of each month in a savings scheme paying 14% p.a. compounded…

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A: The question is based on the concept of Annuity

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.