- Compute the future value of an ordinary annuity with BD 120 semi-annually payments at 5% annual interest for 25 years.
- Find the future value of an ordinary annuity with BD 850 quarterly payments at 8% annual interest for 10 years and 6 months.
- Determine the future value of an ordinary annuity with BD 70 monthly payments at 3% annual interest for 2345 days.
- On March 18, Nada joined a saving account. Her bank will automatically deduct BD 170 from her checking account at the end of each month, and deposit it into her saving account, where it will earn 6 % annual interest. The account comes to term on December 1. Find the following:
a. Find the future value of Nadas saving account. b. Find Nadas total contribution to the account. c. Find the total interest earned on the account. - Khalid recently set up a tax-deferred annuity to save for his retirement. He arranged to have BD 95 taken out of each of his monthly checks; it will earn 8% annual interest. He just had his 20 birthday, and his ordinary annuity comes to term when he is 60. Find the following:
a. Find the future value of Khalids annuity. b. Find Khalids total contribution to the annuity. c. Find the total interest earned on the annuity. Marking Scheme: 5 Mark = Choosing the correct formula, Clear and Correct steps and final answer 4 Marks = Clear and Correct steps with wrong final answer 3 Marks = Choosing the correct formula with Clear steps 2 Marks = Choosing the correct formula with incomplete steps 1 Mark = Choosing the correct formula or Correct final answer 0 Mark = Wrong choosing of formula, wrong steps |