Question 1: 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.
Question 2: 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.
Question 3: 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.
Question 4: 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.
Question 5: 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.
Question 6: 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.