solve question 4 asap with explanation Types of Annuities 1)ldentify the type of annuity and calculate the number of payments during the term: a. Karl pays $280.00 for a lease atthe beginning of every month for 3 years and 6 months at 7% compounded annually. b. Aida pays $1,000 at the end of every three months for5 years and 9 months towards her student loan. At 4.5% compounded quarterly. c. Kapil receives $1,500 at the end of every month for 15years from a retirement fund at 4% compounded semi-annually. Future Value Ordinary Simple 2)Suppose you open an account into which youdeposit $200 at the end of each month for 10 years. If the account pays 7.5% compounded monthly, how much will be in the account at theend of the 10 year period? 3)An annuity is created by depositing $4,500 at the end of each quarter for 12 years at an interest rate of 4.75%quarterly. What is the value of the annuity at the end of the 12 years and how much of the value is interest? 4)How much money should be inan account if it earns 5.25% compounded monthly and deposits of $75 are made at the end of each month for 4 years and 6 months? Howmuch of the value of the account can be attributed to the interest earned? 5) You want have $12,000 at the end of 6 years for the downpayment on a house. If you can invest your money at 3.25% compounded month, what payment would have have to make into the account atthe end of each month for the 6 years? Present Value of Ordinary Simple 6)What is the present value of an annuity if the payments of $800are made at the end of each quarter for 6 years and the investment earns 4.80% compounded quarterly?

An annuity is the type of payment plan where we exchange a lump sum amount for periodic fixed…

quarterly. What is the value of the annuity at the end of the 12 years and how much of the value is interest? 4)How much money should be in an account if it earns 5.25% compounded monthly and deposits of $75 are made at the end of each month for 4 years and 6 months? How much of the value of the account can be attributed to the interest earned? 5)You want have $12,000 at the end of 6 years for the down

quarterly. What is the value of the annuity at the end of the 12 years and how much of the value is interest? 4)How much money should be in an account if it earns 5.25% compounded monthly and deposits of $75 are made at the end of each month for 4 years and 6 months? How much of the value of the account can be attributed to the interest earned? 5)You want have $12,000 at the end of 6 years for the down

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 20E

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