160 Chapter 4 Annuities
For each of Problems 14 to 17:
a) Find n.
b) Find i (expressed as either a fraction or a decimal).
c) Find the value of s _n (^) | (^) i.
d) Find the future value of the annuity.
- You deposit $175 each month into an account that earns 6% interest for 10 years.
- You deposit $1,200 quarterly into an account that earns 5.94% for 18 years.
- You deposit $47.26 each week into an account that earns 11.33% for 37 years.
- You deposit $135.29 monthly into an account paying 8¾% for 27 years.
- At the end of every month, Adam puts $100 into his savings account, which pays 3% interest. Assuming this keeps up
for 5 years, how much will his deposits grow to? - Kulbir has set up an “automatic account builder” plan with an investment company. At the end of each month,
the company automatically deducts $125 from his checking account and deposits it into an account he has set up
to save for his kids’ college costs. If this continues for 17 years, and the account earns 6.36%, how much will his
account grow to? - The Fillmore Fan Company sets aside $28,500 from each quarter’s profi ts and invests the money in a special account
to help pay for future planned improvements to its facilities. If this account earns 4¾%, how much will it have grown
to in 3 years? - Chun has a Holiday Club account at her local savings bank. At the end of each week, she deposits $20 into the
account, which pays 2.8% interest. How much will the account have grown to at the end of the year?
D. Finding Total Interest Earned
- If you put $40 each month into an account that earned 7.8% interest for 30 years, how much total interest would
you earn? - Find the total interest earned on an ordinary annuity of $65.49 per month for 8 years, assuming an 8.43%
interest rate.
E. Finding Future Values Using Annuity Factors: Annuities Due
- Suppose that Donni (from Problem 9) made her deposits at the beginning of each year, but that everything else
remained the same. How much would she end up with?