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12th Edition

Soo T. Tan

Publisher: Cengage Learning

ISBN: 9781337405782

Chapter 5.2, Problem 2TE

Textbook Problem

1 views

Find the amount of an ordinary annuity of

To determine

**To find:**

The amount of an ordinary annuity.

**Given**

Invested amount is

Interest rate is

The number of payments are

**Approach:**

Write the formula to calculate the interest.

Here,

Write the formula to calculate the number of payments.

Here,

Finite Mathematics for the Managerial, Life, and Social Sciences

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In Exercises 25-28, find the present value of...Ch. 5.1 - In Exercises 25-28, find the present value of...Ch. 5.1 - In Exercises 25-28, find the present value of...Ch. 5.1 - In Exercises 25-28, find the present value of...Ch. 5.1 - Find the accumulated amount after 4years if 5000...Ch. 5.1 - Find the accumulated amount after 6years if 6500...Ch. 5.1 - COMPARISON OF SIMPLE AND COMPOUND INTEREST One...Ch. 5.1 - STUDENT LOANS Under the federal loan program for...Ch. 5.1 - CONSUMER DECISIONS Mitchell has been given the...Ch. 5.1 - COURT JUDGMENT Jennifer was awarded damages of...Ch. 5.1 - BRIDGE LOANS To help finance the purchase of a new...Ch. 5.1 - CORPORATE BONDS David owns 20,000 worth of 10-year...Ch. 5.1 - MUNICIPAL BONDS Maya paid 10,000 for a 7-year bond...Ch. 5.1 - TREASURY BILLS Isabella purchased 20,000 worth of...Ch. 5.1 - TREASURY BILLS Maxwell purchased 15,000 worth of...Ch. 5.1 - COMPARING INVESTMENT RETURNS The value of Marias...Ch. 5.1 - INVESTMENTS The value of Alans stock portfolio...Ch. 5.1 - INVESTMENTS The value of Jacks investment...Ch. 5.1 - INVESTMENTS The value of Arabellas stock portfolio...Ch. 5.1 - Write Formula 1b in the slope intercept form, and...Ch. 5.1 - HOSPITAL COSTS If the cost of a semiprivate room...Ch. 5.1 - FAMILY FOOD EXPENDITURE Today, a typical family of...Ch. 5.1 - HOUSING APPRECIATION The Kwans are planning to buy...Ch. 5.1 - ELECTRICITY CONSUMPTION A utility company in a...Ch. 5.1 - PENSION FUNDS The managers of a pension fund have...Ch. 5.1 - RETIREMENT FUNDS Five and a half years ago, Chris...Ch. 5.1 - MUTUAL FUNDS Jodie invested 15,000 in a mutual...Ch. 5.1 - TRUST FUNDS A young man is the beneficiary of a...Ch. 5.1 - INVESTMENTS Alicia invested 10,000 at the rate of...Ch. 5.1 - PROMISSORY NOTES An individual purchased a 4-year,...Ch. 5.1 - INVESTMENT PLANNING Find how much money should be...Ch. 5.1 - FINANCING A COLLEGE EDUCATION The parents of a...Ch. 5.1 - COMPARING RATES OF RETURN In the last 5 years,...Ch. 5.1 - COMPARING RATES OF RETURN Fleet Street Savings...Ch. 5.1 - COMPARING RATES OF RETURN One thousand dollars is...Ch. 5.1 - COMPARING RATES OF RETURN One thousand dollars is...Ch. 5.1 - LOAN CONSOLIDATION The proprietors of The Coachmen...Ch. 5.1 - EFFECTIVE RATE OF INTEREST Find the effective rate...Ch. 5.1 - ZERO COUPON BONDS Juan is contemplating buying a...Ch. 5.1 - REVENUE GROWTH OF A HOME THEATER BUSINESS Maxwell...Ch. 5.1 - ONLINE RETAIL SALES Online retail sales stood at...Ch. 5.1 - PURCHASING POWER The inflation rates in the U.S....Ch. 5.1 - INVESTMENT OPTIONS Investment A offers an 8/year...Ch. 5.1 - EFFECT OF INFLATION ON SALARIES Leonards current...Ch. 5.1 - SAVING FOR COLLEGE Having received a large...Ch. 5.1 - PENSIONS Maria, who is now 50years old is employed...Ch. 5.1 - REAL ESTATE INVESTMENT An investor purchased a...Ch. 5.1 - The simple interest formula A=P(1+rt) Formula (1b)...Ch. 5.1 - EFFECTIVE RATE OF INTEREST Suppose an initial...Ch. 5.1 - Use the formula given in Exercise 73 to solve...Ch. 5.1 - Use the formula given in Exercise 73 to solve...Ch. 5.1 - COMMON STOCK TRANSACTION Steven purchased 1000...Ch. 5.1 - ZERO COUPON BONDS Nina purchased a zero coupon...Ch. 5.1 - MONEY MARKET MUTUAL FUNDS Carlos invested 5000 in...Ch. 5.1 - In Exercise 79-82, determine whether the statement...Ch. 5.1 - In Exercise 79-82, determine whether the statement...Ch. 5.1 - In Exercises 7982, detremine whether the statement...Ch. 5.1 - In Exercise 7982, detremine whether the statement...Ch. 5.1 - optional In exercise 8390, use logarithms to solve...Ch. 5.1 - optional In exercise 8390, use logarithms to solve...Ch. 5.1 - optional In exercise 8390, use logarithms to solve...Ch. 5.1 - Optional In Exercises 8390, use logarithms to...Ch. 5.1 - Optional In Exercise 8390, use logarithms to solve...Ch. 5.1 - Optional In Exercises 8390, use logarithms to...Ch. 5.1 - Optional In Exercises 8390, use logarithms to...Ch. 5.1 - RULE OF 70The rule of 70 is a rule of thumb for...Ch. 5.1 - Find the accumulated amount A if 5000 is invested...Ch. 5.1 - Find the accumulated amount A if 2850 is invested...Ch. 5.1 - Find the accumulated amount A if 327.35 is...Ch. 5.1 - Find the accumulated amount A if 327.35 is...Ch. 5.1 - Find the effective rate corresponding to 623%/year...Ch. 5.1 - Find the effective rate corresponding to...Ch. 5.1 - Find the effective rate corresponding to 934%/year...Ch. 5.1 - Find the effective rate corresponding to 438%/year...Ch. 5.1 - Find the present value of 38000 due in 3 years at...Ch. 5.1 - Find the present value of 150000 due in 5 years at...Ch. 5.1 - Find the present value of 67456 due in 3 years at...Ch. 5.1 - Find the present value of 111,000 due in 5 years...Ch. 5.2 - Is the term of an ordinary annuity fixed or...Ch. 5.2 - What is the difference between an ordinary annuity...Ch. 5.2 - What is the future value of an annuity? Give an...Ch. 5.2 - What is the present value of an annuity? Give an...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 1-8, find the amount future value of...Ch. 5.2 - In Exercises 9-14, find the present value of each...Ch. 5.2 - In Exercises 9-14, find the present value of each...Ch. 5.2 - In Exercises 9-14, find the present value of each...Ch. 5.2 - In Exercises 9-14, find the present value of each...Ch. 5.2 - In Exercises 9-14, find the present value of each...Ch. 5.2 - In Exercises 9-14, find the present value of each...Ch. 5.2 - IRAs If a merchant deposits 1500 at the end of...Ch. 5.2 - SAVINGS ACCOUNTS If Jackson deposits 100 at the...Ch. 5.2 - SAVINGS ACCOUNTS Linda has joined a Christmas Fund...Ch. 5.2 - KEOGH ACCOUNTS Robin, who is self-employed,...Ch. 5.2 - INVESTMENT ANALYSIS Karen has been depositing 150...Ch. 5.2 - RETIREMENT PLANNING As a fringe benefit for the...Ch. 5.2 - INVESTMENT ANALYSIS Luis has 150,000 in his...Ch. 5.2 - AUTO LEASING The Betzes have leased an auto for 2...Ch. 5.2 - SAVINGS ACCOUNTS The Pirerras are planning to go...Ch. 5.2 - INSTALLMENT PLANS Mikes Sporting Goods sells...Ch. 5.2 - AUTO FINANCING Lupe made a down payment of 8000...Ch. 5.2 - LOTTERY PAYOUTS A state lottery commission pays...Ch. 5.2 - PURCHASING A HOME The Johnsons have accumulated a...Ch. 5.2 - PURCHASING A HOME Refer to Exercise 27. If local...Ch. 5.2 - PURCHASING A HOME Refer to Exercise 27. If the...Ch. 5.2 - SAVINGS PLAN Lauren plans to deposit 5000 into a...Ch. 5.2 - FINANCIAL PLANNING Joe plans to deposit 200 at the...Ch. 5.2 - INVESTMENT ANALYSIS From age 25 to age 40, Jessica...Ch. 5.2 - ROTH IRAS Suppose that Jacob deposits 3000/year...Ch. 5.2 - RETIREMENT PLANNING Suppose that Ramos contributes...Ch. 5.2 - In Exercises 35 and 36, determine whether the...Ch. 5.2 - In Exercises 35 and 36, determine whether the...Ch. 5.2 - Find the amount of an ordinary annuity of 20...Ch. 5.2 - Find the amount of an ordinary annuity of 24...Ch. 5.2 - Find the amount of an ordinary annuity of...Ch. 5.2 - Find the amount of an ordinary annuity of...Ch. 5.2 - Find the present value of an ordinary annuity of...Ch. 5.2 - Find the present value of an ordinary annuity of...Ch. 5.2 - Find the present value of an ordinary annuity of...Ch. 5.2 - Find the present value of an ordinary annuity of...Ch. 5.3 - Write the amortization formula. a. If P and i are...Ch. 5.3 - Using the formula for computing a sinking fund...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 1-8, find the periodic payment R...Ch. 5.3 - In Exercises 9-14, find the periodic payment R...Ch. 5.3 - In Exercises 9-14, find the periodic payment R...Ch. 5.3 - In Exercises 9-14, find the periodic payment R...Ch. 5.3 - In Exercises 9-14, find the periodic payment R...Ch. 5.3 - In Exercises 9-14, find the periodic payment R...Ch. 5.3 - In Exercises 9-14, find the periodic payment R...Ch. 5.3 - Suppose payments were made at the end of each...Ch. 5.3 - Suppose payments were made at the end of each...Ch. 5.3 - Suppose payments will be made for 612 years at the...Ch. 5.3 - Suppose payments will be made for 914 years at the...Ch. 5.3 - LOAN AMORTIZATION A sum of 100,000 is to be repaid...Ch. 5.3 - LOAN AMORTIZATION What monthly payment is required...Ch. 5.3 - HOME MORTAGES Complete the following table which...Ch. 5.3 - FINANCING A HOME The Flemings secured a bank loan...Ch. 5.3 - FINANCING A CAR The price of a new car is 20,000....Ch. 5.3 - STRETCH AUTO LOANS To make new cars more...Ch. 5.3 - FINANCIAL ANALYSIS A group of private investors...Ch. 5.3 - STUDENT LOANS Lena is an undergraduate who secured...Ch. 5.3 - FINANCING A HOME The Taylors have purchased a...Ch. 5.3 - FINANCIAL PLANNING Jessica wants to accumulate...Ch. 5.3 - SINKING FUNDS A city has 2.5 million worth of...Ch. 5.3 - TRUST FUNDS Carl is the beneficiary of a 20,000...Ch. 5.3 - SINKING FUNDS Lowell Corporation wishes to...Ch. 5.3 - SINKING FUNDS The management of Gibraltar...Ch. 5.3 - RETIREMENT ACCOUNTS Andrea, a self-employed...Ch. 5.3 - STUDENT LOANS Joe Secure a loan of 12000 3years...Ch. 5.3 - RETIREMENT ACCOUNTS Robin wishes to accumulate...Ch. 5.3 - FINANCING COLLEGE EXPENSES Yumis grandparents...Ch. 5.3 - IRAs Martin has deposited 375 in his IRA at the...Ch. 5.3 - RETIREMENT PLANNING Jennifer is the owner of a...Ch. 5.3 - EFFECT OF DELAYING RETIREMENT ON RETIREMENT FUNDS...Ch. 5.3 - FINANCING A CAR Darla purchased a new car during a...Ch. 5.3 - AUTO FINANCING Dan is contemplating trading in his...Ch. 5.3 - AUTO FINANCING Paula is considering the purchase...Ch. 5.3 - FINANCING A HOME Eight years ago, Kim secured a...Ch. 5.3 - FINANCING A HOME Sarah secured a bank loan of...Ch. 5.3 - PERSONAL LOANS Two years ago, Paul borrowed 10,000...Ch. 5.3 - INVESTMENT ANALYSIS Since he was 22 years old, Ben...Ch. 5.3 - BALLOON PAYMENT MORTGAGES Emilio is securing a...Ch. 5.3 - BALLOON PAYMENT MORTGAGES Olivia plans to secure a...Ch. 5.3 - HOME REFINANCING Four years ago, Emily secured a...Ch. 5.3 - HOME REFINANCING Five years ago, Diane secured a...Ch. 5.3 - REFINANCING A HOME The Sandersons are planning to...Ch. 5.3 - REFINANCING A HOME Josh purchased a condominium 5...Ch. 5.3 - ADJUSTABLE-RATE MORTGAGES Three years ago,...Ch. 5.3 - ADJUSTABLE-RATE MORTGAGES George secured an...Ch. 5.3 - FINANCING A HOME After making a down payment of...Ch. 5.3 - REFINANCING A HOME: The Martinezes are planning to...Ch. 5.3 - ABILITY-TO-REPAY RULE FOR MORTGAGES: The...Ch. 5.3 - ABILITY-TO-REPAY RULE FOR MORTGAGES: Refer to...Ch. 5.3 - HOME AFFORDABILITY: Suppose that the Carlsons have...Ch. 5.3 - COMPARING MORTGAGES: Refer to Example 5. Suppose...Ch. 5.3 - Find the periodic payment required to amortize a...Ch. 5.3 - Find the periodic payment required to amortize a...Ch. 5.3 - Find the periodic payment required to amortize a...Ch. 5.3 - Find the periodic payment required to amortize a...Ch. 5.3 - Find the periodic payment required to accumulate...Ch. 5.3 - Find the periodic payment required to accumulate...Ch. 5.3 - Find the periodic payment required to accumulate...Ch. 5.3 - Find the periodic payment required to accumulate...Ch. 5.3 - A loan of 120,000 is to be repaid over a 10-year...Ch. 5.3 - A loan of 265000 is to be repaid over an 8-year...Ch. 5.4 - Suppose an arithmetic progression has first term a...Ch. 5.4 - Suppose a geometric progression has first term a...Ch. 5.4 - In Exercises 1-4, find the nth term of arithmetic...Ch. 5.4 - In Exercises 1-4, find the nth term of arithmetic...Ch. 5.4 - In Exercises 1-4, find the nth term of arithmetic...Ch. 5.4 - In Exercises 1-4, find the nth term of arithmetic...Ch. 5.4 - Find the first five terms of the arithmetic...Ch. 5.4 - Find the first five terms of the arithmetic...Ch. 5.4 - Find the seventh term of the arithmetic...Ch. 5.4 - Find the eleventh term of the arithmetic...Ch. 5.4 - Find the sum of first 15 terms of the arithmetic...Ch. 5.4 - Find the sum of first 20 terms of the arithmetic...Ch. 5.4 - Find the sum of odd integers between 14 and 58.Ch. 5.4 - Find the sum of even integers between 21 and 99.Ch. 5.4 - Find f(1)+f(2)+f(3)+....+f(20), given that...Ch. 5.4 - Find g(1)+g(2)+g(3)+....+g(50), given that...Ch. 5.4 - Show that Equation 18 can be written as...Ch. 5.4 - SALES GROWTH Moderne Furniture Company had sales...Ch. 5.4 - EXERCISE PROGRAM As part of her fitness program,...Ch. 5.4 - COST OF DRILLING A 100-ft oil well is to be...Ch. 5.4 - CONSUMER DECISIONS Kunwoo wishes to go from the...Ch. 5.4 - SALARY COMPARISONS Markeeta, a recent college...Ch. 5.4 - SUM-OF-THE-YEARS-DIGITS METHOD OF DEPRECIATION One...Ch. 5.4 - SUM-OF-THE-YEARS-DIGITS METHOD OF DEPRECIATION The...Ch. 5.4 - In Exercises 23-28, determine which of the...Ch. 5.4 - In Exercises 23-28, determine which of the...Ch. 5.4 - In Exercises 23-28, determine which of the...Ch. 5.4 - In Exercises 23-28, determine which of the...Ch. 5.4 - In Exercises 23-28, determine which of the...Ch. 5.4 - In Exercises 23-28, determine which of the...Ch. 5.4 - Find the twentieth term and sum of the first 20...Ch. 5.4 - Find the twenty third term in a geometric...Ch. 5.4 - POPULATION GROWTH It has been projected that the...Ch. 5.4 - SALES GROWTH Metro Cable TV had sales of 2,500,...Ch. 5.4 - COLAs Suppose the cost-of-living index had...Ch. 5.4 - SAVINGS PLANS The parents of a 9-year-old boy have...Ch. 5.4 - SALARY COMPARISONS A Stenton Printing Co. employee...Ch. 5.4 - BACTERIA GROWTH A culture of a certain bacteria is...Ch. 5.4 - TRUST FUNDS Sarah is the beneficiary of a trust...Ch. 5.4 - In Exercises 38-40, find the book value of office...Ch. 5.4 - In Exercises 38-40, find the book value of office...Ch. 5.4 - In Exercises 38-40, find the book value of office...Ch. 5.4 - DOUBLE DECLINING-BALANCE METHOD OF DEPRECIATION...Ch. 5.4 - DOUBLE DECLINING-BALANCE METHOD OF DEPRECIATION...Ch. 5.4 - In Exercises 43 and 44, determine whether the...Ch. 5.4 - In Exercises 43 and 44, determine whether the...Ch. 5.CRQ - Fill in the blanks. a. Simple interest is computed...Ch. 5.CRQ - Fill in the blanks. The effective rate of interest...Ch. 5.CRQ - Fill in the blanks. A sequence of payments made at...Ch. 5.CRQ - Fill in the blanks. The formula for the future...Ch. 5.CRQ - Fill in the blanks. The periodic payment R on a...Ch. 5.CRQ - Fill in the blanks. A sinking fund is an account...Ch. 5.CRQ - Fill in the blanks. An arithmetic progression is a...Ch. 5.CRQ - Fill in the blanks. A geometric progression is a...Ch. 5.CRE - Find the accumulated amount after 4 years if 5000...Ch. 5.CRE - Find the accumulated amount after 8 years if...Ch. 5.CRE - Find the effective rate of interest corresponding...Ch. 5.CRE - Find the effective rate of interest corresponding...Ch. 5.CRE - Find the present value of 41,413 due in 5 years at...Ch. 5.CRE - Find the present value of 64,540 due in 6 years at...Ch. 5.CRE - Find the amount future value of an ordinary...Ch. 5.CRE - Find the future value of an ordinary annuity of...Ch. 5.CRE - Find the present value of an ordinary annuity of...Ch. 5.CRE - Find the present value of an ordinary annuity of...Ch. 5.CRE - Find the payment R needed to amortize a loan of...Ch. 5.CRE - Find the payment R needed to amortize a loan of...Ch. 5.CRE - Find the payment R needed to accumulate 18,000...Ch. 5.CRE - Find the payment R needed to accumulate 15,000...Ch. 5.CRE - Find the effective rate of interest corresponding...Ch. 5.CRE - Find the effective rate of interest corresponding...Ch. 5.CRE - Find the present value of 119,346 due in 4 years...Ch. 5.CRE - COMPANY SALES JCN Media had sales of 1,750, 000 in...Ch. 5.CRE - CDs The manager of a money market fund has...Ch. 5.CRE - SAVINGS ACCOUNTS Emily deposited 2000 into a bank...Ch. 5.CRE - INVESTMENTS Anthony invested a sum of money 5...Ch. 5.CRE - SAVINGS ACCOUNTS Kim invested a sum of money 4...Ch. 5.CRE - SAVINGS ACCOUNTS Andrew withdrew 5470.87 from a...Ch. 5.CRE - MUTUAL FUNDS Juan invested 24.000 in a mutual fund...Ch. 5.CRE - COLLEGE SAVINGS PROGRAM The Blakes have decided to...Ch. 5.CRE - RETIREMENT ACCOUNTS Mai Lee has contributed 200 at...Ch. 5.CRE - AUTOMOBILE LEASING Maria has leased an auto for 4...Ch. 5.CRE - INSTALLMENT FINANCING Peggy made a down payment of...Ch. 5.CRE - HOME FINANCING The Turners have purchased a house...Ch. 5.CRE - HOME FINANCING Refer to Exercise 29. If the loan...Ch. 5.CRE - SINKING FUNDS The management of a corporation...Ch. 5.CRE - SINKING FUNDS The management of a condominium...Ch. 5.CRE - CREDIT CARD PAYMENTS The outstanding balance on...Ch. 5.CRE - FINANCIAL PLANNING Matts parents have agreed to...Ch. 5.BMO - Find the accumulated amount at the end of 3 years...Ch. 5.BMO - Find the effective rate of interest corresponding...Ch. 5.BMO - Find the future value of an ordinary annuity of...Ch. 5.BMO - Find the monthly payment required to amortize a...Ch. 5.BMO - Find the weekly payment required to accumulate...Ch. 5.BMO - a. Find the sum of the first ten terms of the...

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