Finance Questions -Time value of money 2

Time value of money 2

1 of 6   ID: FMTH.A.OA.FV.08.L

Calculate the accumulated value (S) of an ordinary annuity consisting of 12 annual payments, if the first 6 payments are $375, and the last 6 payments are $725 each. Assume that the interest rate is 5% pa effective. Give your answer in dollars and cents to the nearest cent.

S = $ 

[1  mark] -  2 of 6   ID: FMTH.A.P.PV.03.L

Clare wants to set up a fund to provide a yearly scholarship of $2,000 in perpetuity. Calculate how much should be deposited into the fund on 3 January 2013 if scholarships are paid yearly starting on 3 January 2016 and the fund can be assumed to earn 3.3% pa effective. Give your answer in dollars and cents to the nearest cent.

Deposit = $ 

[1  mark] -  3 of 6   ID: FMTH.A.OA.FV.01b.L

Calculate the accumulated value (S) that payments of $60 per quarter (paid at the end of the month) will accumulate to after 19 years if interest is paid at a rate of 8% pa compounded quarterly. Give your answer in dollars and cents to the nearest cent.

S = $ 

[1  mark] -  4 of 6   ID: FMTH.A.OA.RP.02a.L

The cash price of a used car is $19,500. Jin wishes to pay for it in 22 monthly instalments. If an interest rate of 7% pacompounded monthly is charged, find the size of the monthly payment (R) payable at the end of each month. Give your answer in dollars and cents to the nearest cent.

R = $ 

[1  mark] -  5 of 6   ID: FMTH.CL.RP.02A.L

Ricky's parents wish to purchase a home costing $400,000. They have a $120,000 deposit and intend to borrow the balance from NSW Bank at an interest rate of j4 = 12.3% pa compounded quarterly repayable over 20 years. Calculate the amount of the quarterly repayment. Give your answer in dollars and cents to the nearest cent.

Regular payment = $ 

[1  mark] -  6 of 6   ID: FMTH.A.OA.PV.01f.L

A particular rental agreement requires monthly payments of $600 for 14 years paid in arrears. Calculate the present value (P) of this agreement if money is worth 11% pa convertible monthly. Give your answer in dollars and cents to the nearest cent.

P = $