Math 1313
Homework 13
Chapter 5 Identify
For the following problems do not work them out.
Identify the type of problem each one is.
1.
Parents have setup an account in order to have $12,000 in 10 years for their child’s college
fund. How much should be deposited quarterly into the account paying 4.5% compounded
semiannually?
a.
Future Value with compound interest
b.
Present Value with compound interest
c.
Future Value of an Annuity
d.
Present Value of an Annuity
e.
Sinking Fund
f.
Amortization
2.
A newborn child receives a $20,000 gift towards college education from her grandparents.
How much will the $20,000 be worth in 17 years it is invested at 7% compounded quarterly?
a.
Future Value with compound interest
b.
Present Value with compound interest
c.
Future Value of an Annuity
d.
Present Value of an Annuity
e.
Sinking Fund
f.
Amortization
3.
Parents want to setup an account for their child studying abroad for next 2 years, where they
can receive a monthly allowance of $600.
The account will be compounded 6.65% monthly.
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 Fall '10
 AbdelnourAhmedZaid
 Math, Time Value Of Money, Future Value, Basic financial concepts, e. Sinking Fund

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