Question

5. An amount is desited for cight years at 96. If compounding occurs quarterly, then the table value is found at A) 896 for eight periods. B) 296 for eight periods. C) 96 for 32 periods D) 2% for 32 periods. 6. Betty wants to know how much she should begin saving each month to fund her retirement. What kind of problem is this? A) Present value of one. B) Future value of an ordinary annuity. C) Present value of an ordinary annuity. D) Future value of one. 7. If an annuity due and an ordinary annuity have the same number of equal payments and the same interest rates, then A) the present value of the annuity due is less than the present value of the ordinary annuity. B) the present value of the annuity due is greater than the present value of the ordinary annuity. the future value of the annuity due is equal to the future value of the ordinary annuity. the future value of the annuity due is less than the future value of the ordinary annuity. D) 8. If a savings account pays interest at 4% compounded quarterly, then the amount of $1 left on deposit for 7 years would be found in a table using A) 7 periods at 4%. B) 7 periods at 1%. C) 28 periods at 4%. D) 28 periods at 1%.

Answer 1

Soution An amounts depoited fo eight yean at & compounda cccuTs quatly,then the teble Nalue No of quanteys ina year- 4arter No Of quanters n a &ypas u 22qtastese Totexest rte fora year n terest ate Por quanter=87u 2- Option a. fo 3a peoiods

Betty unto know ttao mush che cece should begin Saving each month to find her setivemeut. opfion Bs cosrect Futune value O adinany annuity As betty avts to fund her De tirement foom now Her savng can be calceuated ueing the he af future velue of ney anuity