If you put $510 in a savings account at the beginning of each year for 30 years, how much money will be in the account at the end of the 30th year? Assume that the account earns 5%, and round to the nearest $100.
A) $33,300
B) $32,300
C) $33,900
D) None of the above
If you put $10 in a savings account at the beginning of each year for 11 years, how much money will be in the account at the end of the 11th year? Assume that the account earns 11%, and round to the nearest $100.
A) $220
B) $200
C) $190
D) $180
To find the present value of an annuity due, one could
A) find the present value of an ordinary annuity and add one extra payment.
B) find the present value of an ordinary annuity but N = 1 for the number of periods.
C) find the present value of an ordinary annuity and divide by 1 + i.
D) find the present value of an ordinary annuity and multiply by 1 + i.
How much money must you pay into an account at the beginning of each of 30 years in order to have $10,000 at the end of the 30th year? Assume that the account pays 11% per annum, and round to the nearest $1.
A) $39
B) $46
C) $50
D) None of the above
How much money must you pay into an account at the beginning of each of 20 years in order to have $10,000 at the end of the 20th year? Assume that the account pays 12% per annum, and round to the nearest $1.
A) $1,195
B) $111
C) $124
D) $139
How much money must you pay into an account at the beginning of each of five years in order to have $5,000 at the end of the fifth year? Assume that the account pays 12% per year, and round to the nearest $10.
A) $700
B) $1,390
C) $1,550
D) $790
How much money must you pay into an account at the beginning of each of 11 years in order to have $5,000 at the end of the 11th year? Assume that the account pays 8% per year, and round to the nearest $1.
A) $700
B) $257
C) $300
D) $278
