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Future Value of an Annuity of 1
City Peewee League borrowed $883,212, and must make annual year–end payments of
$120,000 each. If City’s interest rate is 6%, how many years will it take to pay off the loan?
Present Value of an Annuity of 1
Future Value of an Annuity of 1
Giuliani Co. lends $524,210 to Craig Corporation. The terms of the loan require that Craig
make six semiannual period-end payments of $100,000 each. What semiannual interest
rate is Craig paying on the loan?
Present Value of an Annuity of 1
Future Value of an Annuity of 1
A company is beginning a savings plan. It will be saving $15,000 per year for the next 10
years. How much will the company have accumulated after the tenth year–end deposit,
assuming the fund earns 10% interest compounded annually?
Present Value of an Annuity of 1
Future Value of an Annuity of 1
A company is beginning a savings plan to purchase new equipment when the current
equipment is expected to wear out. It will be saving $7,500 every six months for the next
10 years. How much will the company have accumulated after the last year-end deposit,
assuming the fund earns 10% interest compounded semiannually?
Present Value of an Annuity of 1
Future Value of an Annuity of 1
A company is beginning a savings plan to purchase a new building. It will be saving
$43,000 per year for the next 10 years. How much will the company have accumulated
after the tenth year-end deposit, assuming the fund earns 9% interest?
Present Value of an Annuity of 1
Future Value of an Annuity of 1
You are little late planning your retirement, but are looking forward to retiring in 10 years.
You expect to save $6,000 a year at an annual rate of 8%. How much will you have
accumulated when you retire?
Present Value of an Annuity of 1
Future Value of an Annuity of 1
A company is setting up a sinking fund to pay off $8,654,000 in bonds that are due in 7
years. The fund will earn 7% interest, and the company intends to put away a series of
equal year-end amounts for 7 years. What is the amount of the annual deposits that the
company must make?