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MCR3U Annuities Practice Problems: Question # 1

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112 views1 page

MCR3U Annuities Practice Problems: Question # 1

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MCR3U Annuities Practice Problems 

Question # 1:  If $100 monthly contributions are made for 5 years into an 
investment that returns 8%/a compounded monthly interest, how much will 
all of the contributions be worth after the last contribution is made?  
{answer is $7347.69}

Question # 2:  How much should be invested semi­annually into an account 
that pays 2%/a compounded semi­annually interest in order to have $10 000 
in total at the end of 7 years? {answer is $669.01}

Question # 3:  What would the monthly payments be, for a total of 4 years 
at a financing rate of 2.9%/a compoundly monthly, for a new vehicle that 
cost $25 460 after taxes.  {answer is $562.42}

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