Jake Werkheiser decides to invest $4000 in an IRA at the end ofeach year for the next 5 years. If he makes these investments, andif the certificates pay 8%, compounded annually, how much will hehave at the end of the 5 years?
(a) State whether the problem relates to an ordinary annuity oran annuity due.
ordinary annuityannuity due
(b) Solve the problem. (Round your answer to the nearest cent.)
A family wants to have a $170,000 college fund for theirchildren at the end of 14 years. What contribution must be made atthe end of each quarter if their investment pays 7.5%, compoundedquarterly?
(a) State whether the problem relates to an ordinary annuity oran annuity due.
ordinary annuityannuity due
(b) Solve the problem. (Round your answer to the nearest cent.)
Sam deposits $400 at the end of every 6 months in an accountthat pays 5%, compounded semiannually. How much will he have at theend of 3 years?
(a) State whether the problem relates to an ordinary annuity oran annuity due.
ordinary annuityannuity due
(b) Solve the problem. (Round your answer to the nearest cent.)
Grandparents plan to open an account on their grandchild'sbirthday and contribute each month until she goes to college. Howmuch must they contribute at the beginning of each month in aninvestment that pays 10%, compounded monthly, if they want thebalance to be $160,000 at the end of 18 years?
(a) State whether the problem relates to an ordinary annuity oran annuity due.
ordinary annuityannuity due
(b) Solve the problem. (Round your answer to the nearest cent.)
Jane Adele deposits $1,400 in an account at the beginning ofeach 3-month period for 9 years. If the account pays interest atthe rate of 12%, compounded quarterly, how much will she have inher account after 9 years?
(a) State whether the problem relates to an ordinary annuity oran annuity due.
ordinary annuityannuity due
(b) Solve the problem. (Round your answer to the nearest cent.)
