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QUESTION 1: What cash payment is equivalent to making payments of $839.00 at the end...

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Accounting

QUESTION 1: What cash payment is equivalent to making payments of $839.00 at the end of every three months for 6 years if interest is 9% per annum compounded annually? The cash payment is ...........

QUESTION 2:

Find the term of the following ordinary general annuity. State your answer in years and months (from 0 to 11 months).

Present

Value

Periodic

Payment

Payment Interval

Interest

Rate

Compounding Period

$9300

$295

month

7%

quarterly

The term of the annuity is .................. year(s) and ..................... month(s).

QUESTION 3:

For the following ordinary annuity, determine the size of the periodic payment.

Future Value

Present

Value

Payment Period

Term of Annuity

Interest Rate

Conversion Period

$6,000.00

3 months

16.25 years

11.9%

quarterly

The periodic payment is ...................

QUESTION 4:

Choosing to commute to work by driving a hybrid vehicle will save $90 every quarter in fuel. If money is worth 4.4% compounded quarterly, how much extra money, over the price of a gas-powered vehicle, should be invested to purchase a hybrid

The amount of extra money that should be invested is..........................

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