8 Annuity due compared to ordinary annuity results in a: A)Higher value B) Lower value C) Same value D) Value 3 times the annuity due E) None of the above
9 Payments in annuities must be made:
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10 The present value of an ordinary annuity:
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11 A sinking fund:
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B) Is really not an annuity C)Aids in meeting a future obligation D) Does not compound its money E) None of the above 12 Bill Martin invests $6,000 at the end of each year for 10 years. The rate of interest Bill gets is 12 percent annually. The final value of Bill's investment at the of the 10th year on this ordinary annuity: (Use the tables in the handbook) A) $88,656.00 B) $33,900.00 C) $88,566.00 D)$105,292.20
13 Mellisa Co. borrowed money that is to be repaid in 7 years. So that the loan will be paid back at the end of the 7th year, the company invests $12,000 at the end of each year at 12 percent compounded annually. The amount of original loan was: (Use the tables in the handbook)
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14 Jill Frost wants to know how much must be deposited in her local bank today so that she would receive yearly payments of $25,000 for 10 years at a current rate of 11 percent compound annually. (Use the tables in the handbook)
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15 Dick Ruth invests $1,200 at beginning of each year for 7 years into an account that pays 14 percent compounded semiannually. The value of the annuity due is: (Use the tables in the handbook)
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B) $25,860.00 C) $27,931.20 D) $26,731.20 E)None of the above
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