Math Problem Solver

When the conversion period is the same as the payment period, an annuity is called:

a.

general

b.

simple

c.

ordinary

d.

certain

e.

deferred

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You wish to calculate the amount that Astrid should withdraw from her college savings fund of $30 000 if she wishes to withdraw equal amounts at the beginning of each year for four years. The annual nominal interest rate is 6% convertible annually. Find c (the number of interest conversion periods per period interval)a.12b.1c.2d.4e.1/2Question 3Not yet answeredMarked out of 1.00Not flaggedFlag questionQuestion textYou wish to calculate the amount that Astrid should withdraw from her college savings fund of $30 000 if she wishes to withdraw equal amounts at the beginning of each year for four years. The annual nominal interest rate is 6% convertible monthly. Find p (the equivalent rate of Interest per payment period)

a.

0.061364

b.

0.06

c.

0.0609

d.

0.061678

e.

0.061185

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Pascal has recently opened an RRSP. He plans to deposit $ 272 at the end of every month for 20 years. The account will compound interest semi-annually at the nominal rate of 5.2 %. How much money will Pascal have in his account immediately after his last deposit?a.$ 117096.97

b.

$ 114823.25c.$ 118233.84

d.

$ 113686.38e.$ 115960.11

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A car costing $ 63083 is purchased with a 25% down payment and further payments of X at the end of every month for 10 years. The annual nominal interest rate is 11% convertible semi-annually. Calculate X.a.$565.44

b.

$542.82c.$632.31

d.

$645.21e.$619.40

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An annuity with periodic payments made at the beginning of each payment period is called:

a.

ordinary

b.

annuity due

c.

simple

d.

none of the options available

e.

general

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Consider the following stream of $ 5000 payments made at annual intervals for a period of 6 years and the accompanying timeline. 5000 5000. 5000 5000 5000 5000 stream of payments |---------|----------|----------|----------|----------|----------|Yr0 Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Timeline ¦ Focal Date What is shown above is thea.present value of a perpetuityb.future value of a 6-year annuity duec.present value of a 6-year ordinary annuityd.present value of a 6-year annuity duee.future value of a 6-year ordinary annuityQuestion 8Not yet answeredMarked out of 1.00Not flaggedFlag questionQuestion textYou wish to calculate the amount that you should withdraw from your college savings fund of $30 000 if you wish to withdraw equal amounts at the end of each month for the rest of your life. The annual nominal interest rate is 6% convertible quarterly. This is a type of

a.

Simple Perpetuity Due

b.

Ordinary General Perpetuity

c.

Deferred Perpetuity

d.

General Perpetuity Due

e.

Ordinary Simple Perpetuity

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Ellora wants to accumulate $150 000.00 in an RRSP by making annual contributions of $5000.00 at the beginning of each year. If interest is 5.5% compounded yearly, calculate how long she has to make contributions.

a.

17.585794

b.

18.676765

c.

18.076686

d.

17.455483

e.

18.202125

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William and Catherine are considering an offer for a piece of property which receives a monthly lease of $ 5320 due at the beginning of each month. If money is worth 16.3% compounded quarterly, what is a fair offer?a.$402249.22

b.

$414363.70c.$410243.14

d.

$310315.75e.$304319.78