MM255 PROJECT 7 Rev 10.2011

# MM255 PROJECT 7 Rev 10.2011 - Unit 7: Annuities Instructor...

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Unit 7: Annuities – Instructor Graded Project You must show your work on all problems. You may type your answer right into this document. Total points for project: 45 points. Projects must be submitted as a Microsoft Word document and uploaded to the Dropbox for Unit 7 . All Projects are due by Tuesday at 11:59 PM ET of the assigned Unit. NOTE: Project problems should not be posted to the Discussion threads. Questions on the project problems should be addressed to the instructor by sending an email or by attending office hours. Part I. Basic Computations 1. Mike’s Sport Shop deposits \$4,600 at the end of each year for 9 years at 6% annual interest. a. How much will this ordinary annuity be worth at the end of the 9 years? (5 points) Answer: b. How much more will this annuity be worth (annuity due) if Mike deposits the money at the beginning of each year instead of at the end of each year? (5 points) Answer: 2. Barb and John Reed want to know how much they must deposit in a retirement savings  account today to have payments of \$2,750 every six months for 20 years.  The retirement

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## This note was uploaded on 11/15/2011 for the course MATH MM255 taught by Professor Douglascopeland during the Fall '11 term at Kaplan University.

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MM255 PROJECT 7 Rev 10.2011 - Unit 7: Annuities Instructor...

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