# retirement supplement

A personal account earmarked as a retirement supplement contains \$342,200. Suppose \$300,000 is used to establish an annuity that earns 6%, compounded quarterly, and pays \$5000 at the end of each quarter. How long will it be until the account balance is \$0? (Round your answer UP to the nearest quarter.) A company wants to have \$30,000 at the beginning of each 6-month period for the next 4 1 2 years. If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.22%, compounded semiannually? (a) Decide whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.) \$ A \$15,000 loan is to be amortized for 10 years with quarterly payments of \$524.58. If the interest rate is 7%, compounded quarterly, what is the unpaid balance immediately after the sixth payment? (Round your answer to the nearest cent.) \$ \$3,500 is deposited at the end of each quarter in an account that earns 6% compounded quarterly until \$90,000 has accumulated in the account. This scenario describes the —Select— Future Value of an Annuity Due Future Value of an Ordinary Annuity . From the formula in the textbook, all values are known, except for ? iSnR. After how many quarters will the account contain \$90,000? (Round your answer UP to the nearest quarter.) quarters What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays 8.6%, compounded semiannually, so that the account will have a future value of \$160,000 at the end of 16 years? (Round your answer to the nearest cent.) A sinking fund is established by a working couple so that they will have \$60,000 to pay for part of their daughter’s education when she enters college. If they make deposits at the end of each 3-month period for 5 years, and if interest is paid at 8%, compounded quarterly, what size deposits must they make? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.) \$ Find the annual percentage yield for an investment at the following rates. (Round your answers to two decimal places.) (a) 7.5% compounded monthly% (b) 7% compounded continuously % A machine is valued at \$10,000. If the depreciation at the end of each year is 20% of its value at the beginning of the year, find its value at the end of 3 years. A homeowner planning a kitchen remodeling can afford a \$500 monthly payment. How much can the homeowner borrow for 2 years at 6%, compounded monthly, and still stay within the budget? (Round your answer to the nearest cent.) Suppose Patrick Goldsmith deposited \$1000 in an account that earned simple interest at an annual rate of 8% and left it there for 6 years. At the end of the 6 years, Patrick deposited the entire amount from that account into a new account that earned 8% compounded quarterly. He left the money in this account for 4 years. How much did he have after the 10 years? (Round your answer to the nearest cent.)\$
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