Overview
Question 1
Determine whether or not the following situation describes an annuity. If it is an annuity, determine whether the jackpot amount is the annuity's present value or future value. Also, determine whether it is an ordinary annuity or an annuity due. Joe won a lottery jackpot which will pay him $1500 every week for 25 years, starting immediately.
Group of answer choicesThe situation describes a future value of an ordinary annuity.The situation does NOT describe an annuity.
The situation describes a present value of an annuity due.
The situation describes a present value of an ordinary annuity.
The situation describes a future value of an annuity due.
Flag question: Question 2Question 2
Determine whether or not the following situation describes an annuity. If it is an annuity, determine whether the amount is the annuity's present value or future value. Also, determine whether it is an ordinary annuity or an annuity due. Roger's electric billing is based upon last month's usage. He gets his electric bill every month.
Group of answer choicesThe situation describes a present value of an ordinary annuity.The situation does NOT describe an annuity.
The situation describes a future value of an annuity due.
The situation describes a present value of an annuity due.
The situation describes a future value of an ordinary annuity.
Flag question: Question 3Question 3
You deposit $2000 each year into an investment account that earns 8% interest for 25 years. Find the value of sn\slashi.
Group of answer choices73.1059399519.34847520
12.50000000
68.47225196
Flag question: Question 4Question 4
Suppose you invest $25 per week into an account that earns 3.5% compounded weekly. You make the deposits at the beginning of each week. If you continue to make these deposits for 40 years, how much will you save?
Group of answer choices$113,407.94$104,466.69
$113,484.27
$53,820.00
Flag question: Question 5Question 5
The chief finance officer of your church reminded the church board of a loan that they have to pay off in 10 years. The amount needed to pay off the loan in 10 years is $236,952.39. The officer recommended that the church should prepare for the payoff by setting aside annual payments into a fund paying 2.8%. How much should each payment be?
Group of answer choices$20,860.60$23,049.84
$20,292.41
$24,358.71
Flag question: Question 6Question 6
You purchased your house through a contract for deed. In addition to regular monthly payments, you will need to make a balloon payment (large single payment) of $68,225.08 in 12 years. To prepare for this balloon payment, you will make annual payments into a fund paying 2.5%. How much should each annual payment be in order to satisfy the balloon payment when it is due?
Group of answer choices$4,824.82$5,827.56
$4,945.44
$5,546.75
Flag question: Question 7Question 7
For 20 years, you deposited $5500 each year into an investment account that earned 6% interest. Determine how much total interest you earned from this investment.
Group of answer choices$202,320.75$66,000.00
$196,820.75
$92,320.75
Flag question: Question 8Question 8
You need to finance $8,579.03 on a 3-year car loan. The interest rate for the loan is 5.75%. What is your monthly payment?
Group of answer choices$245.88$258.77
$238.31
$260.02
Flag question: Question 9Question 9
You take out a 5-year car loan with monthly payments of $425. The interest rate for the loan is 4.75%. How much total interest will you pay over the life of the loan?
Group of answer choices$2,841.69$22,658.31
$25,500.00
$1,575.06
Flag question: Question 10Question 10
You're looking forward to retiring in a few years, and you hope that you will have enough in your retirement account to provide you with $1,700 per month for 20 years. Assuming a return of 3.45%, how much do you need in your account when you retire?
Group of answer choices$586,421.82$406,827.00
$394,393.43
$294,426.48