Week 1, 11.2 and 11.

3 examples

Use formulas for the following 4 questions:

1. Find the present value of $475 payments made at the end of each quarter for 6
years if money is worth 7.2% compounded quarterly.

2. Annuity payments of $210 were made every 3 months for 12 years, earning 7%
compounded quarterly. How much money will be in the account after the 12 year
term?

3. Curtis agreed to repay a loan with $325.80 monthly payments for 4 years. What
is the amount of the loan if interest is 6% compounded monthly?

4. Find the accumulated value of $120 payments made every six months for 8
years at 8.8% compounded semi-annually.
Use the BA II+ keys for the following 4 questions
5. Thomas enrolled in a savings plan with his employer, having $90 withdrawn
every month and transferred to an account offering 9.6% compounded monthly.
How much interest is earned after 10 years?

6. You’ve received an inheritance that will allow for $300 monthly withdrawals for
the next 10 years. The withdrawals will be taken from an account offering 4.8%
compounded monthly. What was the amount of the inheritance?

7. In purchasing a speedboat, J.R. made a down payment of $3500 and will make
$480.96 payments every 3 months for 2 years. Interest is 10% compounded
quarterly.
a) What was the purchase price (cash value) of the speedboat?
b) How much interest will be paid?

8. Jamie saved $420 per month during her 4 years of high school, depositing into
an account offering 6% compounded monthly. When she enters college, she will
leave the account untouched for 2.5 years.
a) How much did Jamie have in the account after 2.5 years in college?
b) How much did Jamie contribute?
c) How much will be interest?