a) In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.
Find the required payment for the sinking fund. (Round your answer to the nearest cent.)
Monthly deposits earning 4% to accumulate $9000 after 10 years.
= $____________
b) In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.
Find the amount of time needed for the sinking fund to reach the given accumulated amount. (Round your answer to two decimal places.)
$3500 yearly at 6% to accumulate $100,000.
=___________________yr
c.)In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.
You and your new spouse each bring home $1400 each month after taxes and other payroll deductions. By living frugally, you intend to live on just one paycheck and save the other in a mutual fund yielding 7.92% compounded monthly. How long will it take to have enough for a 20% down payment on a $175,000 condo in the city? (Round your answer to two decimal places.)
=_____________________yr
d) In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.
An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.1%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.)
Joe $
Jill
$