Kirk wishes to accumulate 10,000 in 3 years for a down payment on a house. Use Table 12-1 from your text to find the sinking fund payment he would need to make at the END of every month, at 6 interest compounded monthly.
A) 2,773.58
B) 3,733.58
C) 254.22
D) 356.59
Q. 2Hot Wheels Depot needs to accumulate 25,000 in 6 years to purchase new equipment. What sinking fund payment would they need to make at the END of every three months, at 8 interest compounded quarterly? (Use Table 12-1 from your text)
A) 821.78
B) 679.42
C) 545.96
D) 620.42
Q. 3Arun wants to have 500 at the END of every year for 20 years. The bank pays 11 interest, compounded annually. Arun calculates that the present value of the ordinary annuity is 3,981.67. What would be the present value if payments were to be received at the BEGINNING of every period rather than the END?
A) 5,183.91
B) 5,525.98
C) 4,043.26
D) 4,419.65
Q. 4Your bank pays 9 interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of 800 at the END of each year, for 10 years.
A) 5,134.13
B) 6,099.86
C) 5,596.20
D) 6,454.28
Q. 5Use the appropriate formula to find how much you should deposit now at 7 interest, compounded annually, to yield an annuity payment of 800 at the BEGINNING of each year, for 14 years.
A) 6,996.37
B) 7,870.92
C) 7,486.12
D) 8,421.89
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