Suppose you want to purchase an ordinary annuity that will pay you $ 6,000 a year for

the next 8 years and the annual interest rate will be 7 percent . The maximum price
you should be willing to pay for the annuity is closest to *
5 points

$54889
$53680
$33,550
$35828

With annual compounding at 10 percent for 5 years, the future value of an annuity due
of $2,000 is closest to *
5 points

$12210.2
$13431
$1000.20
$3221

For $1,000 you can purchase a 5-year ordinary annuity at an annual rate of 8 %
compounded annually. The yearly Payment that will be made is approximately *
5 points

501.91 dollars
263.80 dollars
250.46 dollars
324.40 dollars

A person wants to amortize a loan of 200,000 by making semiannual payments for 20

years. Assume that the interest is 12 % compounded semiannually, Given that the
payment at the end of each period is 13292.31 dollars, the principal that is left to be
repaid after 15 payments have been made is approximately *
5 points

129098.22 dollars
140404.50 dollars
152461.75 dollars
169920.3 dollars

The present value in perpetuity for a payment of $ 5000 per year at the rate of 2%
compounded annually is *
5 points

$ 83333.3
$1000000
$1, 33,566.67
$250,000
A person owes a bank a sum of $ 8000 and agrees to pay it off by annual payments of
$ 1100 for the first 6 years and a final payment at the end of 7 years. How much
should the final payment be if the interest is at 8% compounded annually? *
5 points

5085.17 dollars
2914.83 dollars
4995.51 dollars
None of the above