Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?

On Ist of November 2005, a man was in receipt of a 250 USD per annum payable monthly on the first day of each month, the final payment being on 1st of August 2024, total amount of the annuity is calculated on the basis of an interest rate of 8% p.a effective Select one: O a. 1,115 USD O b. 734 USD O c. 850 USD O d. 2,460 USD O e. 1,850 USD

Treating each as a separate event answer the following: A. If $12,000 is deposited annually starting on January 1, 2020 and it earns 9%, how much will accumulate by December 31, 2029? B. Calculate the future value of an annuity due of $12,000 for 10 periods at 9% C.  Steve Milner borrowed $120,000 on July 1, 2020. This amount plus accrued interest at 8% compounded semiannually is to be repaid in total on July 1, 2030. To retire this debt, Milner plans to contribute to a debt retirement fund five equal amounts starting on July 1, 2025 and continuing for the next four years. The fund is expected to earn 6% per annum.   Compute how much must be contributed each year by Steve Milner to provide a fund sufficient to retire the debt on July 1, 2030? D.  Andrea is 40 years old today and she wishes to accumulate $2,000,000 by her sixty fifth birthday so she can retire to a beach in Florida. She wishes to accumulate this amount by making equal deposits on her fortieth through her sixty fourth…

Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period.   Annuity Payment Annual Rate Interest Compounded Period Invested 1. $3,000 7% Annually 6 years 2. 6,000 8 Semiannually 9 years 3. 5,000 12 Quarterly 5 years

Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1)              Annuity Payment Annual Rate Interest Compounded Period Invested Present Value of Annuity 1. $5,200 7.0 % Annually 5 years   2. 10,200 10.0 % Semiannually 3 years $4,264.21 3. 4,200 12.0 % Quarterly 2 years

Compute the amount of interest on $8350 at 6.5% p.a. from October 8, 2019, to August 4, 2020.   What rate of interest is paid if the interest on a loan of $12500 is $196.06 from November 14, 2019, to May 20, 2020?   Loan payments of $1725 due today, $510 due in 75 days, and $655 due in 323 days are to be combined into a single payment to be made 115 days from now. What is that single payment if money is worth 8.5% p.a. and the focal date is 115 days from now?   What principal will earn $355.99 interest at 9.75% p.a. from February 4, 2017, to July 6, 2017?   Determine the face value of a four-month promissory note dated May 20, 2018, with interest at 7.5% p.a. if the maturity value of the note is $1190.03.     A Company sells locks for $10 each. Manufacturing cost is $2.60 per lock; marketing costs are $2.40 per lock; and royalty payments are 20% of the selling price. The fixed cost of preparing the lock is $18 000. Capacity is 15,000 locks. Compute the contribution…

Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period.   Annuity Payment Annual Rate Interest Compounded Period Invested 1. $4,000 7% Annually 5 years 2. 9,000 8 Semiannually 3 years 3. 3,000 8 Quarterly 2 years

A perpetuity-due with annual payments consists often level payments of X followed by a series of increasing payments. Beginning with the eleventh payment, each payment is 1.5% larger than the preceding payment. Using an annual effective interest rate of 5%, the present value of the perpetuity is 45,000. Calculate X. B C 1,679 E 1,696 1,737 D 1,763 1,781

Find the accumulated value 16 years after the first payment is made of an annuity on which there are 6 payments of $850 each made at 2-year intervals. The nominal rate of interest convertible once every two months is 4.1%.   A. $3228.88 B. $2018.05 C. $4036.1 D. $9225.37 E. $8072.2